many opportunities

For many, 2020 has surprisingly worked out to be the year that they are ready to purchase their brand-new home. Though the market is currently in flux, there are many opportunities to get you and your family into the home of your dreams. By following these steps below, you’ll be ready to purchase your new place in no time!

1. Develop a Budget

Before you get started in your home search, peruse through the options that are currently on the market. Based on your current preferences, what is the median price you’re looking at? Set your budget based on your preferences and start preparing your finances based on this research.

2. Research Possible Down Payments

Again, based on the median price range of the homes on your radar, you’ll be able to plan for yet another aspect of your financial preparedness: the down payment. Down payments are typically about 20% of the home’s asking price, but if you need it, there are options to settle for less. Speak with a mortgage professional to discover alternatives if necessary.

3. Work on Your Credit

After you have these two factors solidified, you are ready to begin putting money away toward a realistic financial goal. Still, there’s no use in saving if you won’t be eligible for a mortgage loan. By monitoring your credit score, you’ll be aware of exactly what aspects of your current borrowing patterns need refinement.

Identify which accounts need to be paid down and if there are errors on your report that should be removed. This way, you’ll tailor yourself into a more trustworthy borrower and improve your chances for mortgage approval.

4. Collect Your Documentation

Mortgage applications require a significant amount of personal information for approvals. Necessary documentation may include pay stubs, tax documents, and several types of identification (i.e., driver’s license, passport, social security card, etc.). Get all these ready for your upcoming application.

5. Get Pre-Approved

No matter what you’ve researched thus far, lenders are not guaranteed to meet your expectations in terms of loan offers. They may extend a much smaller amount to you than you anticipated, which can throw off your budgeting quite dramatically. Acquiring a pre-approval letter as soon as you’re closer to a purchasing commitment will solidify your buying power and help to determine more clearly the price ranges available to you.

6. Proceed in Your House Hunting

With all this previous research and documentation settled, you are ready to narrow down your home search. You now have the grounds to specify further what you do and do not want in a house, as you will know your precise financial limitations, enabling you to evaluate homes that fall only within your buying capacity.

7. Work with a Mortgage Professional

A qualified mortgage professional will advise you on beneficial financial practices every step of the way through your home-buying journey. You’ll gain awareness into exactly what aspects of your finances must be strengthened and refined before you apply for the home loan and proceed toward the final steps of securing the home of your dreams. Get in touch with a mortgage professional today to get started!