If you have decided to take the leap and become a homeowner, let us be the first to say congratulations. Deciding to become a homeowner is a big decision and one that can change your life. Don’t worry, when we say change your life, we mean it positively. After all, being a homeowner comes with many perks that renting cannot give you. Now that you have made the big decision, you may be wondering what you should do next. This is a question many find themselves thinking about; however, you don’t need to think too much about it because our team at Donohue Real Estate can help you through the home buying process.
Our team knows the ins and outs of becoming a homeowner and can make sure you are on the right track. In the meantime, use the following tips to ensure you are prepared for homeownership.
Know Your Credit Score
One of the more important factors looked at when purchasing a home is your credit score. This score will tell people how good you are at paying back the money you owe and if you can pay it back on time. The higher the credit score, the better off you will be. However, this doesn’t mean that those with a lower credit score cannot buy a home. It just may a little more challenging.
If you are set on purchasing a home but are willing to wait a little longer, improving your credit score as much as you can, will be helpful no matter what. At the very least, knowing what it is can help you better prepare and figure out what your options are.
We cannot stress enough how important saving money is. Even if you have a great job that makes plenty of money to cover a mortgage, you still need to save. Life is unpredictable, and anything can go wrong. You need to prepare for the worst just in case an unexpected obstacle gets in the way. Barriers such as getting laid off and future maintenance issues with the home can happen to anyone. If you save money and end up not needing it, then more power to you. You will at least have peace of mind for a future rainy day. It’s also very important to save money for the down payment. Chances are that you have some kind of an idea of what you will need to pay; however, the down payment range can be pretty big. The typical range is between 3.5 to 20%. With this big of a range, it’s extremely important to save as if you will be paying 20%. If you save for the bigger range and end up paying a small percent, then you can at least have peace of mind knowing you have extra money set aside for other aspects of the homebuying process.
Something many overlook but should pursue is getting pre-approved. Pre-approval has the power to put your foot in the door with the sellers. To accomplish this, you need to share some information such as income and debt with a lender. The lender will then let you know how much they think you will be able to borrow. Knowing this information will give you some insight into your budget and where to look for homes. This information will also give sellers more confidence in you as a prospective buyer. It’s important to keep in mind that you are not the only person looking at these homes. Having this pre-approval will help you stand out from the other homebuyers.
Becoming a homeowner is a huge accomplishment, and one you should be proud of. However, before you can call yourself a homeowner, it’s important to prepare properly, so your home buying process is straight forward and made easy.
The last thing you want is to run into any unexpected obstacles. Although life happens, with the proper preparation, you can easily navigate anything that is thrown your way. To learn more tips for preparing, or to start your journey towards being a homeowner, give our team a call today at (561) 838-9555.