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Buyer Preparation

How to prepare to buy a house

Your home is one of the largest purchases you’ll ever make. The process can be stressful, but if you know how to prepare to buy a house, you can spare yourself some worry. Determine ahead of time how much you can afford, where you want to live, the kind of home you want to buy, and how you to plan to pay for it

How to start preparing to buy a house

When preparing to buy a house, find out what the average cost of a home is in your neighborhood. Figure out what you need to buy a house and start saving if you don’t carry sufficient funds to cover closing costs. An expected down payment is sometimes 20% of the home’s value, but many people pay much less — as little as 3% in some instances. However, the more you put down, the lower your monthly payments will be. Keep in mind that if you’re looking in a competitive market, a higher down payment will give you an edge. You may also want to consider saving additional money to make upgrades to your home after you buy it, such as a new paint job or new furniture.

Decide what you can afford

The next step when preparing to buy a house is deciding how much money you can spend on a home. If you’re financing the home, prospective lenders may require a certain debt-to-income ratio, which means your monthly debt payments shouldn’t exceed a certain percentage of your monthly earnings.
Lenders will also check your credit score to qualify you for a loan. If your credit score isn’t where it needs to be, you may be able to raise your score by paying off unsecured credit card and loan balances, as well as making timely payments. You can also request copies of your report from each of the three major credit bureaus. If there’s false information on your credit report, you can dispute the item and potentially raise your score. Some lenders may even offer you more than you expect, but it’s essential only to purchase a home you can afford, to avoid undue financial strain as a homeowner.

Consider The Tina Sui Realty Team

Preparation for buying a home can involve a lot of searching, paperwork, and stress, but you can lay out your exact demands for a home to a real estate agent. The Tina Sui Realty Team may know about home listings that aren’t available online and can help you navigate the home buying process more efficiently and find a better price.

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