A journey of 1,000 miles starts with a single step. Which is true of any complex undertaking. Following is a guide to buying a loft or condo. Leap in and follow the suggestions to be prepared to buy your ideal home.
The New Year is often a time to hit the reset button and start fresh. It is an excellent opportunity to start reaching an ongoing goal you have. For example, if buying a home has been an ongoing goal, use the New Year to begin taking steps to become a homeowner. The path to affordable homeownership is possible! We have provided many valuable tips to help you get there:
Track your spending. The first step to buying a home is to prepare financially. Track your spending to understand where and how you spend your money. This enables you to identify poor spending habits. Here are some helpful ways to monitor your expenses:
- Create a spreadsheet and manually input every purchase.
- Use a money-monitoring app, such as Mint, Acorns, Wally, etc.
- Check and recheck your credit card use.
Once you have tracked your spending for at least one month, you can determine where you need to cut costs and how much money you can save every month.
The path to affordable homeownership is possible!
Save for a down payment. After you have tracked your spending, you are ready to begin saving for a down payment. First, create a budget that is realistic for you. Next, ensure that you are saving money by allocating a certain amount of money toward your savings account each month. You can make several small changes that will allow your funds to add up over time. Start by cutting unnecessary living expenses, such as magazine and streaming subscriptions, eating out, gym memberships, etc. Suppose you are disciplined and stick to your budget. In that case, you will see a significant increase in your savings and will be able to make a substantial down payment!
Improve/maintain your credit score. Your credit score is significant factor lenders use to determine your eligibility to buy a home. Therefore, the better your credit score, the better your chances to secure a home loan. However, if your credit score is not where you want it to be, HOMESTAR is here to help you! Contact a Mortgage Loan Originator to learn more about boosting your credit score.
Get pre-qualified. Pre-qualification is an official method of determining if you qualify for a mortgage. It also shows interested parties that you are committed to purchasing a home. This will increase your chances of sealing the deal at the price you desire.
Hire a real estate agent. We suggest finding a real estate agent to guide you through the homebuying process. An agent can make this process more accessible because they will work for you and provide the exact information that you need. Contact a Mortgage Loan Originator for recommendations on a reputable real estate agent in your area.
Begin house hunting. Use real estate websites to help you in your home search. Websites like Zillow.com, Trulia.com, HomeFinder.com, or Redfin.com are great resources to discover available houses on the market. In addition, take advantage of open houses and visit properties in person. While you are in each home, take photos and notes to compare and contrast all the homes you see.
Budget for utilities and home maintenance. You cannot precisely know the cost of home maintenance and utilities for the house you buy. However, you can get a rough estimate of utilities by requesting the utility costs from the seller for the last 12 months. In addition, your home inspection will show you what home repairs you will need to make. This will give you a general idea of how much you will spend on home maintenance.
Consider other costs. Other monthly expenses to consider are homeowners insurance, property taxes, and private mortgage insurance (required if your down payment is less than 20%). Homeowners’ insurance costs will depend on the size, location, the value of your personal possessions, and the age of the home. Property taxes are collected by the county, city, and state governments, so your property taxes will depend on your home’s taxable value.
Avoid increasing debt. Income and employment history are two of the most essential factors mortgage lenders consider. Your job history needs to be steady, and your debt-to-income ratio matters. These are two significant factors lenders consider when determining how much of a mortgage you can afford. Avoid making big purchases that will increase your debt! #buyaloft #entarispowerful
What is your resolution for 2022? #comment
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Copyright © This free information provided courtesy L.A. Loft Blog with the information provided by Corey Chambers, Realty Source Inc, DRE 01889449; MPR Funding Inc NMLS 2000513. We are not associated with the seller, homeowner’s association, or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com, Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties are subject to prior sale or rental. This is not a solicitation if the buyer or seller is already under contract with another broker.
