To be fair, these things should be started 6-12 months prior to you moving into your dream house. But, there is no time like the present to start the process.
1. Check your credit
A good credit score is essential to buying a home, since it proves you have a good track record paying off past debts (such as your credit card bills and college or car loans). A higher credit score makes it easier to qualify for the lowest interest rates, which give you more purchase power.
To find your credit report, go to https://www.annualcreditreport.com/ and request a free copy from all three credit reporting bureaus: TransUnion, Equifax and Experian.
You can also join a service, such as Credit Karma (https://www.creditkarma.com/) which will make you an active participant in managing your credit score. I check mine at least once a month. I think it’s worth it.
Credit Karma provides you with a list of suggestions for helping increase your scores. It also gives you details on what credit companies are looking for and how you can take advantage of this information.
2. Start saving
You’ll need cash reserves to buy a home, and you’ll need to prove to a lender that you can afford your mortgage payments. These payments MAY be higher than what you're currently paying in rent; however, it may be less - a lot less. In other words, start saving now!
Do you really need to eat out as often as you do? Are you bringing your lunch to work? Making your coffee at home? A Keurig (or other single cup coffee maker) is cheaper than a stop at Starbucks each day.
We started using Butcher Box to have amazing quality grass fed proteins sent to us once a month. We spent less on that box than we would for one dinner out. And that box contains at least 24 meals. You spend a little now - and save a lot overall. Use my discount code for $30 off your first box. http://fbuy.me/oVn7L
3. Earn extra cash
It’s not just about cutting your spending, try out some ways to increase your income. Pick up a few extra shifts at work, go through your home/garage and look for things you really don’t need that you can consider selling.
How about a part time job, or a “gig”. You have skills you can share with others - this could be anything from mowing your neighbors lawns, picking up a retail job during their high seasons, walking dogs - what can you do to earn a bit extra that will build that down-payment and help with moving expenses.
4. Consult a lender
The sooner you visit a lender, the faster you’ll know where you stand on getting a mortgage, and the steps you should take to improve your situation. A good lender will work with you and give you honest feedback about where you are and what steps you need to take.
We recommend Andrew McDonald at Axia Home Loans. He is the right guy to help you make that leap. (andy.mcdonald@axiahomeloans.com)
5. Investigate down payment assistance options
It pays to explore down payment assistance programs. Lenders can give you an idea of how much house you can afford, but you have to create a personal budget to decide how much you will be comfortable spending on your mortgage payment. Always keep in mind Taxes and Tax Credits, HOA Fees, Insurance costs. All of these need to be part of that monthly number.
6. Discuss options with your family
Do you think your family can help you put together that down-payment? If your credit isn’t great, maybe one of your family members can help by co-signing a loan with you. This could give you more purchase power and provide you with a higher target price or budget. This is not for everyone, but may help you out.
7. Attend my seminar on buying a home
Want to learn more? We offer free seminars that explain the home-buying process. Let me know if you are interested in attending our next seminar.
Email me at marilyn.dash@exprealty.com to get on our list.
8. Start looking at neighborhoods
Unless you already know where you want to live, take the time to visit a variety of potential neighborhoods. You'll want to scout out areas that meet your needs in terms of transportation options and other amenities. Exploring different areas will help you identify your priorities.
Map out your work locations, child care, schools, favorite restaurants, parks - everything you want to be close to and cannot live without. Draw a circle on a map that identifies your target area. Let’s start there.
It pays to explore down payment assistance programs. Lenders can give you an idea of how much house you can afford, but you have to create a personal budget to decide how much you will be comfortable spending on your mortgage payment. Always keep in mind Taxes and Tax Credits, HOA Fees, Insurance costs. All of these need to be part of that monthly number.
6. Discuss options with your family
Do you think your family can help you put together that down-payment? If your credit isn’t great, maybe one of your family members can help by co-signing a loan with you. This could give you more purchase power and provide you with a higher target price or budget. This is not for everyone, but may help you out.
7. Attend my seminar on buying a home
Want to learn more? We offer free seminars that explain the home-buying process. Let me know if you are interested in attending our next seminar. Email me at marilyn.dash@exprealty.com to get on our list.
8. Start looking at neighborhoods
Unless you already know where you want to live, take the time to visit a variety of potential neighborhoods. You'll want to scout out areas that meet your needs in terms of transportation options and other amenities. Exploring different areas will help you identify your priorities.
Map out your work locations, child care, schools, favorite restaurants, parks - everything you want to be close to and cannot live without. Draw a circle on a map that identifies your target area. Let’s start there.
9. Visit Open Houses
Going to Open Houses early in your search will let you see what’s available in your area that might fit your budget. You can then begin to see what matters most in your decision. What is important to you; the location, room to entertain or outdoor space. Let the agent know you are working with me -- or better yet, have me join you on your Open House Adventure Tour.
If you see a house you like, let the agent know I’ll be in touch with them and then---- call me ASAP.
10. Let’s Talk
I have a process that I use when I’m working with home buyers. I like to listen to your wants, needs and dreams and help you find a home that meets or exceeds your requirements and expectations.
I’ve spent nearly 30 years as a consultant, working with companies and helping them identify their business requirements. This skill provides me with a unique vision on how to help you identify your personal and family requirements.
Let’s get together and walk through where you are, where you want to go and how I can help you get there.
Going to Open Houses early in your search will let you see what’s available in your area that might fit your budget. You can then begin to see what matters most in your decision. What is important to you; the location, room to entertain or outdoor space. Let the agent know you are working with me -- or better yet, have me join you on your Open House Adventure Tour.
If you see a house you like, let the agent know I’ll be in touch with them and then---- call me ASAP.
10. Let’s Talk
I have a process that I use when I’m working with home buyers. I like to listen to your wants, needs and dreams and help you find a home that meets or exceeds your requirements and expectations.
I’ve spent nearly 30 years as a consultant, working with companies and helping them identify their business requirements. This skill provides me with a unique vision on how to help you identify your personal and family requirements.
Let’s get together and walk through where you are, where you want to go and how I can help you get there.
Marilyn Dash Sells Homes!
