Many FTHB want to know what they can do to prepare to buy a home. This video outlines what they need to know to start that process.  Be sure to use this video to share with your real estate agents so they can share it with their network.

 

Are you tired of it yet? Do you feel like you’ll never be ready to buy a home? You aren’t alone.  Thousands of people feel the same way as you.

But, we have great news.

It’s not as hard as you think to buy a home. You don’t need to be rich or have a fancy job.

With a few simple steps, you can prepare yourself to buy a home.

First, to buy a home you must save money. Most loan programs require a down payment. But, it’s not the 20% down payment everyone fears. For some loan programs, all you need is 3.5% of the sales price. So, that means if you are buying a $200,000 home, that’s $7,000.

You’ll also need money for closing costs, but there are ways around that. You can ask for seller assistance or choose a lender-paid closing cost loan.

You may even use gift funds for the down payment from family member, but having some money saved is important.

Are you wondering how you could save money when you pay rent, utilities, and other daily costs of living expenses?

Make small changes. Cut back on certain expenses and spending habits and put the money in a high-yield savings account. Invest it if you can – it will grow even faster. Be consistent and dedicated to your savings and you’ll get there faster than you think.

Next, focus on your credit score. Fortunately, credit scores change monthly and any positive changes you make will reflect in the credit score faster than you think.

Head to www.annualcreditreport.com and get your free credit report. You get one free report from each bureau annually. Look over it and see what you must fix.

Ask yourself:

•  Do I have any late payments? If so, bring them current fast. This hurts your credit score the most.
• Do I have over 30% of my credit lines outstanding? If so, pay your credit card balances down.
• Are there any collections or public records? Get with the agencies and set up a payment plan or way to satisfy the debts.

The faster you work to improve your credit score, the higher it will be when you’re ready to take the plunge and buy a home.

Once you’ve established your baseline, focus on what you can afford. Use a mortgage calculator to see what you can afford based on your current income and financial situation.

If it’s much less than you hoped, think about ways to improve your situation. Do you need to start a side hustle to bring in more money? Do you spend too much money and need to cut back so your debt-to-income ratio is within the parameters of most loan programs?

The key is to start now, even if you won’t buy a home for a few years, the more money you save and the harder you work to improve your credit, the more options you’ll have when you’re ready to transition from renter to buyer.

If you have any questions, be sure to contact me, your mortgage lender.  I can help you get you ready to achieve the American Dream – owning a home.

 

Michael Anthony O’ Connor
President
Certified Veterans Lending Specialist
NMLS# 254139
CA DRE: 01149902
(833) 444- 3464
www.michaelanthonyoconnor.com
Mike@Got-Funding.com