Buying a home brings the buyer a feeling of accomplishment. When you are wanting to buy a home, you have to remember that it is not a process that will happen overnight. The process for buying a home can take a long time. Most of the process for buying a home is making sure you are financially able to do so. Some steps to take before you are looking to buy a home include finding job stability, making sure you have no outstanding bills, and build up a savings account for money down. Accomplishing all of these steps happen over a period of time.
Having a steady source of income is one of the key factors in buying a home. Job stability is more than just having a paycheck every week. It is making sure you are at a company you have a future with, as well as being with a company that appreciates you for your work by giving you a fair raise. Your take home income should be a significant amount more than what your monthly budget requires.
Another factor to consider when getting ready to buy a home is to make sure you do not have any outstanding bills. The unpaid or late bills in your name will reflect poorly in your credit score. This will also give the financial institution you are trying to get a home loan through that you are not always reliable in making monthly payments on time. If you have credit card debt, it is advised to have the balance below half of what your credit limit is or have the credit cards paid off entirely. Financial institutions like to see their clients have minimal credit card debt because this type of debt is classified an unsecured debt.
The final factor to take care of before shopping for a home is to make sure you have a savings account built. Generally when you are buying a home, you will be required to have a down payment on the home loan. The percentage of the down payment required depends on your credit score and the type of home loan you are applying for. It is also a good idea to have a savings account built to show the financial institution you are capable of saving money and you have some money to help with any unexpected expenses, should they occur.
When the time comes to shop for a home, make sure you are realistic about the price and type of home you want to buy. Having a pre-approved letter for a house loan from a financial institution will show the seller or real estate agent you are a serious buyer. This will also help narrow down your search for a home. With the pre-approved letter for a home loan from a financial institution, you may want to consider buying a home under the maximum amount you are pre-authorized for. If you buy a home that is less than your pre-authorized amount, you will not feel so tied down to the house and will have some extra money to save for the unexpected expenses that could occur.
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The information provided is for the clients' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties clients may be interested in purchasing. All properties are subject to prior sale or withdrawal. All information provided is deemed reliable but is not guaranteed accurate, and should be independently verified. Greater Baton Rouge Assoc. of REALTORS® Last Updated: 6/18/2018 12:27:34 PM