“Success is where preparation and opportunity meet” -Bobby Unser
Purchasing a home is an important milestone in one’s lifetime. Properly preparing to buy a home is a process that can drastically improve the smoothness of the homeownership journey.
Here are important facets to consider having in place when preparing to purchase a home:
- Credit Score
Most lenders look for a 620 credit score when considering a mortgage loan.
In the next blog post, I will discuss mortgage programs for first-time homebuyers and investors.
You can improve your credit score by paying down debts (gradually if you can’t afford to pay it all upfront). It may be helpful to use credit cards tot improve your credit score. An important caveat to note: for optimum improvement, utilize no more than 30% of your credit limit and pay your bill before the due date every month.
Keep track of your progress by creating a bill calendar via phone or in a book.
2. Work history
Lenders typically like to see the last 2 years of W2s or tax returns.
3. Down payment
You most likely will need savings or a gift to purchase a home.
4. Knowledge about the benefits and responsibilities of purchasing a home
The benefits of homeownership are many, and include equity building power. Equity is defined as the value of your assets subtracted by the value of your debts. It is proven that homeowners statistically have higher equity than renters.
Another benefit of homeownership is appreciation of your home over time, meaning that the value of your home typically increases over time.
Other benefits include a sense of secure belonging in the community you reside.
One of the main responsibilities of homeownership are maintenance costs.
What questions do you have about the home buying process? Email me today at amarealestateagent@gmail.com.
Ama Real Estate Agent 