What do you need to do if you’re preparing to buy a home? Here’s a three-step guide to help you:
1. Decide which area works best for you. You need to know which areas are important to you and why they’re important. Certain areas have fantastic school districts, for example, while others offer more options in terms of nightlife.
2. Understand the capacity to purchase. This means knowing your debt-to-income ratio and credit. I recommend meeting with a lender because they have the ability to provide you with the information that illustrates your eligibility. They’ll also be able to pre-approve you. Who knows—you may get a raise soon or switch jobs. Either of these would increase your home buying bandwidth.
3. Recognize the investment you’d make as a down payment. Many buyers have savings goals they want to reach, but it’s been frustrating for some of them this year because the market has moved up on them. Even though they’ve been saving each month for a down payment, prices keep going up (although interest rates are low). If you’re having trouble saving up enough money on your own, you can do a disbursement from a Roth IRA or use a 401(k) loan. Family and friends can also gift you money to purchase your home.
If you’d like to know more about preparing to buy a home, my team and I have a specific four-step buyer process that I’d be happy to send you. Just give me a call or send me an email. If you have any other real estate needs, feel free to reach out to me as well. I look forward to hearing from you.