Step Up and Into Home Ownership – What You Need to Know
Buying a home is a life goal shared by many individuals and families – not just in which to build a life, but also as a means of building wealth, paving the way toward other long-term financial goals and ultimately retirement. However, those plans could derail quickly if you stretch yourself too thin with your home purchase, even if the numbers add up for qualifying for the mortgage. It’s important, then, that you research and find out how much homes are selling for in your area, and how quickly they are selling.
Realtor Kevin H. Tarma with Realty ONE Group Arete can not only track housing trends to help you find the home that fits your life and your finances, but he will also help you navigate the entire home-buying process so that each step gets you closer to your home.
Navigating The Preliminary Numbers
The first three financial aspects you need to review as part of the home-buying process include:
The first step to take is to check your credit report. The reason to do this first is to get a start on finding and removing any errors, or paying down any debt so that you can possibly get your score up and increase your chances of more favorable mortgage terms.
Next, we check your debt to income ratio. Now just because you can afford it doesn’t mean you have to max out. You need to look at your entire life to ensure you don’t spread yourself too thin with your new mortgage and related expenses, such as insurance, maintenance, and property taxes.
Finally, review your down payment resources. Things affecting how much of a down payment you will need include your home purchase price, the type of mortgage loan you get, and any special programs you might qualify for as a homebuyer. Some mortgage types allow gifts from friends or family members. If you decide to wait a few months and save a bit more toward the down payment pot, discuss the consequences of that with your Professional real estate agent. In a seller’s fast-moving market, you could find a dearth of available or desirable inventory in a few months, or a rapid increase in sales prices.
Some prospective homeowners elect to take HUD-approved homebuying classes or workshops before taking the plunge into homeownership. Finding additional avenues to education is never a bad idea when you’re talking about your financial future.
The Home Search
Once you have all of your numbers lined up, you will know how much home you can afford. If you are familiar with the area in which you want to live, you and your real estate agent can go through your top neighborhood choices to look for available inventory in your price range. It’s best to have a pre-approved mortgage from your lender so you can move just as quickly with an offer to the seller. Don’t forget to review property taxes for these neighborhoods, as well. Whether they are paid annually in a lump sum or added into your monthly payment, those taxes can significantly add to your home expense.
Climb The Steps to Homebuying Success
Buying a home can seem understandably intimidating; it’s a significant purchase, in fact one of the biggest for most people. But it is also an Investment, one that many people make each year. With careful, conservative, and conscientious planning – and help from Professional Realtor Kevin H. Tarma (801-564-4802) – you can be one of them, and stake your homeownership claim.