Are you ready to upgrade your starter home to one that will house your growing family? Or maybe you’re ready to buy the home of your dreams, complete with a master suite, 3-car garage, gazebo and hot tub? Realtor.com offers this 10-step guide to financing the perfect home.
- Get your finances in order to start your financial planning or to keep it on track.
- Find out how much money you’ll need to move out of your current home or apartment and into that dream home. Consider down payment costs, closing costs, moving expenses, utility deposits, etc.
- Check your credit score. Will you qualify for a home loan? If not, consult a loan officer to find out what changes you need to make, including correcting errors on your credit report.
- Discover your purchasing power. Based on your down payment, credit rating and income, you’ll want to find out how much home you can afford. Remember to include indirect costs too when calculating your budget – taxes, insurances, utility costs, maintenance, warranties, etc.
- Understand your mortgage payment. You’ll need to know how much you can expect to pay based on the price of your home, the interest rate, taxes and insurance.
- Learn your loan options. Talk to your mortgage broker or lender to find out what types of home loans are available and which best fits your situation.
- Prepare to make a fair offer. Your Realtor® can help you determine an appropriate and fair offer when you’re ready to commit to that dream home.
- Secure a home loan. Now that you’ve made an offer and had it accepted, you’ll want to turn that pre-approval into a home loan.
- Purchase insurance. Your home is one of the biggest investments you’ll ever make, so make sure that investment is properly insured.
- Seal the deal. Closing on your home is one of the most stressful – but also the most rewarding – parts of the home buying process. Ask your Realtor® and mortgage lender what to expect.
For more information on each of these 10 steps, visit Realtor.com or contact your local Realtor® who can walk you through the home buying process, step by step.