If you need assistance, please call 520-474-1777

Your Checklist Before You Buy Your Home

Your Checklist Before You Buy Your Home

 

The time has come and you are ready to buy, but before you start searching for your next home review this checklist. This list helps you prepare your budget in advance and guide you to financial success in the future.

1. Reduce Debt & Increase Credit Score: Before you start looking for your next home, you should request a credit report. This will give you a starting point on understanding your credit score before you request a loan. Your credit score will influence the interest rate of your loan. Some lenders can provide free assistance with credit repair. Always consult with a reputable provider.

2. Save Money to Set Yourself Up with a Larger Down Payment: While it is possible to purchase a home without a 20% down payment, it’s best to get as close as possible. This will allow you to have a smaller mortgage rate; avoid private mortgage insurance (PMI); and receive a better rate. Zero down payment programs exist; however, some loans may increase the amount you pay in overall interest towards your loans. Various loan products are available and the down payment amount can range from 0-20%. Depending on the loan, private mortgage insurance is usually required by lenders on a down payment less than 20%. A good online mortgage calculator can help determine estimated payments.


3. Keep a Conservative Budget: It’s just not the list price that is included in the purchase. Keep in mind there are inspection fees, earnest fees, moving expenses, and typically new furniture purchases that you should prepare for in advance. Along with the initial moving expenses, you should be aware of your monthly budget moving forward. With homeownership comes property taxes, HOAs, home repairs, and more. You want to make sure you are prepared for future budgeting as well.

4. Get Preapproved: Your preapproval can help if you are putting in an offer against someone who is not.....which makes you look like a more ready and willing buyer. Your preapproval is based on your actual income, debt, and credit history. This is different from prequalification, which is how a lender determines how much you can afford and can be used on an initial offer towards a home. To become preapproved, you need to provide at least 30 days of pay stubs; 2 months of bank statements (to show reserves); and W-2 or tax returns for 2 years (to show history of employment). A lender will guide you through this process.

5. Set Your Home Buying Budget: By getting your finances in line before your first home showing, you know the price range of a home that you can actually afford. It is important to set a realistic budget that fits your income level and characteristics you want in a home.

6. Find an Agent You Trust: A knowledgeable agent will be able to guide you along the way and educate you on the home buying process. Also, keep in mind that an agent is usually very well connected to the other professionals you will need before closing day.

As you begin the process to find your next home checking these items off your list will provide you with a more successful home buying experience. Our team is here to help you! Let us know the area and/or neighborhood you are looking to live along with your top needs our team of professionals will assist with finding your next home.

READY TO PURCHASE? SUBMIT INFORMATION FOR BUYER’S CONSULT!
OMNI Homes International
1050 East River Rd Suite 302
Tucson, AZ 85718
520-474-1777

© 2020 Arizona Regional Multiple Listing Service, All rights reserved. The data relating to real estate for sale on this website comes in part from the Arizona Regional Multiple Listing Service. Real estate listings held by brokerage firms other than OMNI Homes International are marked with the Arizona Regional Multiple Listing Service logo and detailed information about them includes the name of the listing brokers. All information deemed reliable but not guaranteed and should be independently verified. All properties are subject to prior sale, change or withdrawal. Neither listing broker(s) nor Arizona Regional Multiple Listing Service shall be responsible for any typographical errors, misinformation, misprints and shall be held totally harmless. October 20, 2020
The data relating to real estate listings on this website comes in part from the Internet Data Exchange (IDX) program of Multiple Listing Service of Southern Arizona. IDX information is provided exclusively for consumers' personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing. Listings provided by brokerages other than are identified with the MLSSAZ IDX Logo. All Information Is Deemed Reliable But Is Not Guaranteed Accurate. Listing information Copyright 2020 MLS of Southern Arizona. All Rights Reserved.
This site powered by CINC: www.cincpro.com