{"id":838,"date":"2021-03-18T09:23:40","date_gmt":"2021-03-18T15:23:40","guid":{"rendered":"https:\/\/agentstory.com\/a\/?p=838"},"modified":"2021-08-10T10:18:51","modified_gmt":"2021-08-10T16:18:51","slug":"how-can-i-prepare-to-buy-a-home","status":"publish","type":"post","link":"https:\/\/agentstory.com\/a\/how-can-i-prepare-to-buy-a-home\/","title":{"rendered":"How Can I Prepare to Buy a Home?"},"content":{"rendered":"\n
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\u201cGive me six hours to chop down a tree, and I\u2019ll spend the first four sharpening the ax.\u201d <\/p>-Abraham Lincoln<\/cite><\/blockquote>\n<\/div><\/div>\n\n\n\n

This timeless piece of advice applies to many situations people encounter in their lives\u2014buying a home is one of them. <\/p>\n\n\n\n

If you\u2019re planning on purchasing a home, there are several steps to complete before you slap an offer on the first listing that grabs your attention. <\/p>\n\n\n\n

Buying a home isn\u2019t easy.<\/em><\/p>\n\n\n\n

That\u2019s the truth. And if you\u2019re wondering if you can get ahead of the sale, you can. <\/em>The earlier you are to the party, the easier it will be to close the deal at a fair price. So what should you be on the lookout for when entering the gauntlet of homebuying? <\/p>\n\n\n\n

Start Saving Early<\/h2>\n\n\n\n

When you\u2019re mapping out the plan to buy a new home, one of the most important preparations you can make is adding to your savings. <\/p>\n\n\n\n

Easier said than done, right? <\/em><\/p>\n\n\n\n

Accumulating wealth begins by making sound financial decisions over time. Here are a few tips to get you on the right track:<\/p>\n\n\n\n

1. Prepare meals at home (and shop for generic brands).<\/p>\n\n\n\n

2. Cancel subscriptions you\u2019re not using.<\/p>\n\n\n\n

3. Eliminate frivolous spending on gambling, alcohol, entertainment, and clothing.<\/p>\n\n\n\n

4. Allocate a comfortable amount of your paycheck to go into savings automatically each month.<\/p>\n\n\n\n

5. Grow your wealth using risk-averse investments.<\/p>\n\n\n\n

6. Pay down and refinance your current debt.<\/p>\n\n\n\n

7. Cut back on large purchases.<\/p>\n\n\n\n

8. Make a savings goal each month and stick to it.<\/p>\n\n\n\n

All of these activities will bring you one step closer to your goal of purchasing a new home. Most people assume the down payment and the closing costs will be their only expenses. However, new homeowners typically buy furniture, make repairs, and enhance their new space to fit their personality.<\/p>\n\n\n\n

Getting ahead of your savings as far out as possible can help you avoid financial stressors and give you the flexibility to personalize your new home.<\/p>\n\n\n\n

Check and Amend Your Credit<\/h2>\n\n\n\n

In most cases, having an exceptional credit report will help you secure financing at the lowest rates, which will ultimately save you money. Many websites and banking services offer free credit reports where you can gauge your credit health monthly and respond to any missteps. When preparing to buy a new home, you\u2019ll ideally want a score above 620. <\/p>\n\n\n\n

However, there are mortgage options for buyers who don\u2019t have good credit (see below).<\/em><\/p>\n\n\n\n

Important factors to consider when amending your credit are the amounts owed, your payment history, and the length of time you\u2019ve held credit. Many first-time homebuyers will experience issues getting a loan because of their \u201cthin\u201d credit history. Unfortunately, there\u2019s not much you can do about this fact (besides having multiple long-standing lines of credit). <\/p>\n\n\n\n

Check your credit report for any outstanding debt and pay at least<\/em> the minimum monthly payments. Continue to make payments on time and try to reduce your overall debt. Reduced debt not only raises your credit score but it lowers your interest payments on those lines of credit as well as your debt-to-income (DTI) ratio.<\/p>\n\n\n\n

\"what<\/p>\n\n\n\n

Determine How Much House You Can Afford<\/h2>\n\n\n\n

Figuring out how much you should spend on your monthly housing payments isn\u2019t the same for everybody. Your current debt, projected spending, and future plans deserve consideration.<\/p>\n\n\n\n

For the risk-averse homeowner:<\/strong><\/p>\n\n\n\n