Home Buying Tips

Talk to a mortgage specialist/broker about  qualifying for a mortgage and talk about your credit score, how to improve it (if necessary), and if they have any plans or programs  for first time home owners or for people in your situation.

Having an emergency fund is not a requirement for getting a mortgage, but it’s essential when you own a home. 

This money is there for the sole purpose of funding an emergency or unexpected expense so you don’t have to dip into your life savings or take on more debt. Think of it as a financial safety net.

Typical unexpected expenses people use their emergency fund for include medical emergencies, car accidents or job loss. Someone who owns a home could incur additional  

  Determine If It is the right time for you to purchase a Home

The following is strange advice coming from a Real Estate agent, but I believe that some people, even if they meet the qualification requirements, have a hefty down payment saved and a healthy emergency fund, they still might not be ready to purchase a home. 

Why, because buying a home isn’t just a financial endeavor, it’s also a big responsibility. You’ll need to make sure you’re up for maintaining the home, handling utility bills, taking care of landscaping, maintaining your appliances, and performing home repairs. 

These types of responsibilities may require you to sacrifice your weekends and after-work hours. When determining if it’s the right time to purchase a home, see if you are both financially and emotionally ready.

 Learn as much as possible about the home buying process.

When you contact me I will discuss and go over the home buying process in detail. I feel this is an important step as it can help reduce your stress and minimize any surprises along the way. While every situation is different, please see my section on the steps in buying a home.

1. Shop around for your loan because different lenders structure their loans in different ways and may have slightly different rates and fees. A half-percent difference in interest rate may seem insignificant, but it could save you thousands of dollars over the years. 
2. Some lenders may offer lower closing costs with a higher interest rate. Some may offer higher closing costs with a lower interest rate. Determine which is best for your situation. If you plan to refinance or sell the home in the near future, you may want to go with a loan that has lower closing costs. If you plan on holding onto that mortgage for a long time, a loan with a lower interest rate may be a better option.
3. Cost isn’t the only factor to consider when comparing lenders. You’ll also want to look for a lender that has great customer service, responds swiftly, answers any questions you have and has a seamless mortgage process.
4. By shopping around for your mortgage, you’ll be able to compare and save. However, be careful before applying to multiple lenders as this can negatively affect your credit score.

  If you are borrowing funds for the home, do not borrow money or make big purchases until after you close on the home. Any new debts can send up warning flags or even disqualify you from the loan. If you have any questions, contact your mortgage provider.