No matter where you are in the home buying process, or even if buying a home isn’t on your immediate radar, it’s important to understand that making this dream a reality is a significant money move. There are a few things people should consider when they start thinking about the possibility of home ownership.
Knowing where you stand financially and being equipped with core knowledge puts you well ahead of the game when you get started on your homeownership journey.
Whether you are actively looking to purchase your first home or just starting the research process, U.S. Bank wants to ensure you are equipped with all the tools necessary to navigate your way through. While these tips are not an exhaustive list, they are meant to get your wheels turning about preparation.
1. Get A Clear Picture Of Your Financial Situation
Understanding your debt to income ratio and your credit score are two critical steps toward being financially ready. You can start with taking the U.S. Bank Financial Assessment to help you gauge your strengths and find areas where you can learn more.
2. Find Out How Much You Can Afford
Many people have a clear picture of the type of home they desire. However, your pockets may not always line up with your wish list. Once you know you’re in good standing with your credit and savings, understanding your budget will help you figure out which home options are best for you. Check the resources on the U.S. Bank Access Home site to help you get started on figuring out your budget, savings goals, credit standing and more.
3. Prepare For Making a Down Payment
Most mortgage loans require you to make a down payment, so make sure your savings are enough to cover this cost. There are loan options that can require little to no money down so consulting with a Mortgage Loan Officer is important to find the right type of loan for you.
4. Decide What You Want
Once you have an idea about your financial picture and develop an idea of the type of home you desire. List the non-negotiables. Your first home may not be your forever home, but you don’t want it to be a place you regret. Make a list of things you absolutely cannot live without to make your search a little less stressful.
5. Choose A Real Estate Agent
Though you may already have a Mortgage Loan Officer in your corner, you’ll also need someone to help you find that perfect home. Link with a real estate agent that will not only understand your needs but will be the best partner in the home buying process. Talk frequently and often about your options, desires and timelines. Talk to friends, colleagues, and family members about reliable agents in your area.
6. Determine Your Budget
Maybe you were pre-approved for a certain amount, but the top of that approval amount may put you beyond your comfort level as it relates to a monthly payment. Also, consider the debt you already have. How much more can you handle? Once you decide on your budget, stick to it and don’t budge. No matter how early you are in the process, having a grasp on your budget will keep you ahead of the game.
7. Learn As Much As Possible
Have you ever heard the phrase, “there are no dumb questions?” In this case, that statement is more than true. Ask as much as possible and get all the clarity you need. From utilizing online resources to your mortgage loan officer to your real estate agent, ensure you are equipped with all the knowledge you’ll need as you complete your home buying journey..
Visit here to learn more about how U.S. Bank can be a partner in every step of the process, from getting prepared, to planning and purchasing.
