How to Become a Home Buying Rock Star
Know Your Numbers
It all starts with money. Unless you’re paying in cash, you’re going to need to borrow funds for a mortgage. Here are some things you need to know:
- Your income
- Your debt (including credit cards, student loans, auto loans and more)
- Utilities – estimate costs for electric, cable, internet, home heating, etc.)
- Monthly expenses (food, clothes, entertainment, and transportation)
- Money for a down payment (this can vary depending on home cost and the type of loan you qualify for)
- Money for property taxes, mortgage insurance, and closing costs
Get Pre-Approved with a Lender You Trust
Once you have a handle on your personal finances, you should get pre-approved with a reputable lender, like NECU. This is a firm number that allows you to know how much you have to work with as you search for your home. It is based on your credit, debt-to-income ratio and analyzed your tax returns and other parts of your financial picture.
Make a Wish-List
Be clear about what you want. Sit down with your co-buyer and agree on wants and needs so that you make sure you’re focusing on the right properties. Agree on your absolute must haves and what you can live without before you start shopping.
Find a Good Realtor
Ask the people you trust for recommendations. You might have a friend or family member who is a licensed Realtor, just make sure you’re comfortable having hard conversations with whoever you choose. This is one of the biggest decisions you will make and it’s important that you can have open and honest communication lines with a real estate professional who can put your interests first.
Now all you have to do is find your perfect house! Happy house hunting!
If you have any questions about the home buying process, don't hesitate to reach out to one of our Mortgage Specialists.