It’s an exciting moment when you make the decision to stop renting and start making moves toward buying your first home. As thrilling as the decision can be, many newbies get hung up by how unfamiliar and overwhelming the home buying process can seem. So what can you do to prepare? Here are a few simple steps to follow to get on the path to becoming a first-time homeowner.
- EXAMINE YOUR FINANCES & BUDGET. Figure out your monthly income and create a budget. Make sure to plan for any upcoming changes, such as any future big purchases (other than the down payment on your new home) or any changes in income.
- MAKE A SAVINGS PLAN. Set a target amount you would like to save and begin finding ways to save each month. Analyze your spending habits each month and strategize ways to cut down.
- PLAN FOR A DOWN PAYMENT & CLOSING COSTS. Most lenders require a minimum of 3% of the purchase price plus the addition of closing costs to purchase your home. Ask your Summit Funding loan officer about down payment assistance programs available in your area and other low down payment options.
- KNOW YOUR CREDIT & CREDIT SCORE. Having a healthy credit score is vital to the home buying process. Know your credit score and work on any potential issues now. More information about credit can be found
- GET PREQUALIFIED. Schedule a meeting with a Summit Funding loan officer to get prequalified. At this meeting, your loan officer will let you know how much home you can afford which will prepare you for a successful home shopping experience.