Four Steps to Take Before Buying a Home
Did you know that one in seven Americans has at least 10 credit cards? It's true. However, the average is four, according to a report from Experian.
If you are considering buying a home, there are four crucial elements you must have in place before taking the first steps toward homeownership. Whether you are a first-time home buyer or moving up to a new home, plan for your move by preparing for the following:
1. Create a budget. Home buyers need to have enough money to cover monthly mortgage payments
comfortably. Budgeting your monthly finances is a must before taking any of the first steps towards finding and moving into a new home. Though seemingly an obvious preparation, many foreclosures occur because buyers don't carefully examine their income and expenses ahead of time and fail to plan for monthly mortgage payments. Talk to a financial advisor or a real estate professional to see if you can afford a monthly mortgage. The more financial planning you do in advance, the less likely you'll be in for any surprises.
2. Plan for taxes and insurance. On the topic of affordability, be sure your income will cover any property taxes and homeowner's insurance payments. Buyers need to make sure their monthly income covers these extra expenses. While planning your finances, include these two items in your budget. Make sure to have other spending money and extra cash available as well. You never know when something will break down or need replacing.
3. Factor in maintenance. Buyers must also have the ability to properly maintain the home. Maintaining the home is important. If the home isn't in good condition, you will lose value on what is most likely your largest investment and set the stage for a potential loss when it comes time to sell. Don't ignore problems that need attention.
4. Review your credit standing. Lastly, a home buyer must have good credit – especially in today’s tight lending environment. If you have late payments, a bankruptcy or unpaid debts, it will be difficult to lock in a low rate mortgage. If you do land a mortgage deal, the interest rate will be higher if your credit score isn't up to par. A good line of credit will ensure the best rates possible. Pay off those debts before trying for a mortgage.
With the right funds, maintenance resources and a good line of credit, you will be well on your way to jump starting the home buying process.
For more information, please contact
Elizabeth H Jones at
ejones@dianeturton.com
Cell 732-890-8021
or Diane Turton, Realtors.
Elizabeth H Jones Wall Office Office 732.292.1400 Cell 732.890.8021
Email ejones@dianeturton.com Website: Elizabeth H Jones
April is Coming Fast !
