The process of buying a home has gotten more
complicated in recent years. To make sure everything goes smoothly, you’ll want
to get organized before you even begin to look for a house. Once you’ve taken
care of these things, you’ll be ready to shop for the home of your dreams.
Check
Your Credit Score. Examine and fix any blemishes on your credit score,
before you apply for a loan. Also, avoid taking on any new debt at this time.
This includes buying a new car or other large item on credit.
Look
at Your Finances.
Take an honest look at your budget and figure out how much home you can afford.
There are many online calculators available to help you with this. In general,
most loan programs require that your mortgage payment be no more than 28% to
31% of your gross monthly income.
Beef
up Your Savings.
You should have enough cash saved up to cover your down payment and closing
costs. Depending on your mortgage, you’ll need anywhere from 3.5% to 20% down,
plus money available for closing.
In addition, mortgage lenders like to see borrowers
with a healthy savings account. This shows that you have enough money to pay
for your closing costs and any incidental expenses, as well as enough to live
on once you move in. Savers aren’t likely to be living paycheck to paycheck,
and are good candidates for a loan.
Apply
for Your Mortgage. Get preapproved for a loan before you even start to look
at homes. Applying for a loan first gives you a definitive answer on how much
mortgage you can afford, and ensures you have financing ready when you find
your dream home.
Refine
Your Shopping List. Finally, think about the features you really want in a
house. You’ll probably live in this house for several years, and you want it to
serve your needs the entire time. After all, if you change your mind in a few
years, you may not be able to sell this house quickly.
Shopping for a home is exciting. Take the
time to organize and prepare before you look at properties, so you can be ready
to make an offer when you do find a home that you love.
Gabby Tyer - CRS, GRI
Real Estate Sales and Property Management
Managing Principal Broker/Owner
Realty Solutions
www.allaboutportland.com
www.jessicashope.com
Gabby Tyer is your ultimate real estate resource for Portland, Oregon and surrounding areas. Visit my website for detailed information regarding today’s real estate markets.
Portland Real Estate market stats news and education. Complete search access to all homes for sale in Portland, Oregon and surrounding areas.
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