9 THINGS tO DO BEFORE BUYING A HOME
Buying a house takes time and patience, and for many first-time buyers, it’s an emotional process. As you prepare for what is likely one of the most significant investments of your life, make it easier on yourself by getting prepared. Use the tips below to help make the experience more enjoyable.
pay down debt
Since lenders often consider your debt-to-income ratio when you apply for a mortgage, credit card debt, personal loans, and auto loans may limit your ability to qualify for certain mortgage loans. By reducing debt and keeping monthly payments low, you may have a better debt-to-income ratio, which frees up money for your home purchase.
save for a down payment
Various Loan Programs have different minimum down payment requirements. With an FHA loan, for example, you may be able to purchase a home with little money down. However, with a larger down payment, you may enjoy smaller monthly payments, and you may be able to avoid paying for mortgage insurance.
check your credit
Get a copy of your credit report (it’s free for U.S. consumers) and verify that everything is accurate. Errors can drag your score down, and may make it harder to qualify for certain mortgage loans. But you may be able to fix those errors, and it’s best to give yourself several months to do so.
calculate how much you can borrow
By knowing an approximate price range for houses, you can limit your search to homes that are in that range. Affordability typically depends on your down payment and monthly income. Check out our Affordability Calculator. And Contact a Loan Geeks Home Loan Expert to perform exact calculations for you and get started on your Pre-Approval.
gather documentation
You may be surprised at how much paperwork it takes to get a mortgage. Especially if this is your first time. Get a head start by gathering bank statements, pay stubs, and W-2 forms to document your finances. If you’re self-employed, you may need to provide additional documentation such as tax returns and details about your business.
decide what you need vs. what you want
How many bedrooms and bathrooms do you need? If you plan to grow your family or downsize, consider those factors. Do you prefer a single-level home, an open floor plan, or a large yard? With your dream house in mind, you and your real estate agent can focus your efforts.
get to know neighborhoods
Before you look at individual houses, evaluate potential geographic areas. Research school choices and neighborhood data. What is the proximity to work and what would be your commute time. And spend some time walking around at different times of day just to soak up the vibe.
budget for homeownership expenses
You will very likely spend more than just your mortgage payment as a homeowner. Prepare for ongoing maintenance costs, new furniture, renovations, and the occasional surprise.
get pre-approved!
I'm ready to get pre-approved! What is my next step?
Apply Online
With our State-of-the-Art Two-X Online Application technology, getting a home loan has never been easier or faster. you will be walked through the application process step-by-step. And the help of a Loan Geeks Home Loan Expert is never more than a mouse click or phone call away.
Talk to a Loan Geeks Home Loan Expert!
If you are not comfortable starting the application process online, no need to worry. A Loan Geeks Home Loan Expert is available to answer all of your questions and get you started! Answer a few quick questions on the contact request and we’ll have a Loan Geeks Home Loan Expert call you.