How Can Families Appropriately Prepare to Purchase a Home?

Written by  //  2017/07/10  //  Buying a Home  //  No comments

Buying a home is a dream for many people, but it also is the biggest financial commitment they are likely to ever make. That’s why it’s important to do all you can to prepare to purchase a home. Here are some things you can do to appropriately prepare to buy a home.

Save Money

Though you can buy a home with almost no down payment these days, it’s still a good idea to save up money toward your new home. Being able to put down some money will help to lower the amount of mortgage insurance you might have to pay. It’s also important to have money in the bank to help pay for closing costs as well as improvements you might want to make to your new home.

Check Your Credit Score

While a down payment is important, it’s not as important as having a good credit score. Your credit score is likely to be the most important factor in whether you qualify for a mortgage and how low of an interest rate you can get. A top credit score will get you the lowest-available mortgage rates, which can save you tens of thousands of dollars in financing costs over the life of your home mortgage. If your credit score is not high enough, work to increase it by paying down debt and bringing any past-due accounts current.

Work with a Realtor

If you are buying a home, it is to your benefit to work with a realtor. An experienced real estate agent, like those at RE/MAX ASSOCIATES, can help you find the right home that works for you. Realtors often know of listings before they even hit the market, giving you a leg up in seeing a home. And the best part of it is that all those services won’t cost you anything, because sellers are expected to pay both the seller’s and buyer’s agents’ sales commissions.

Get Pre-Approved

Knowing you can get a mortgage will help you when you make an offer on a home. That’s why it’s important to talk to a lender before starting your home search to get pre-approved for a mortgage. Pre-approval doesn’t guarantee a mortgage, but it does indicate that you can qualify, and it also will give you a guide on how much you can afford.

Preparing to buy a home will help make the process go more smoothly. Following these tips will ensure that you are appropriately prepared to make the purchase of your dreams.

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