Prior to even conducting a home search, you should be knowledgeable about how much home you can actually afford. BHHS Executive Group agents are prepared to educate you on the process to identify this amount. They will guide you through the procedure of being pre-approved for a mortgage.
Utilize the Budget Basics Work Sheet to help you accurately identify how much you currently earn and spend on a monthly basis. This information will be beneficial in your discussions with your BHHS Executive Group agent and your financial lender regarding costs associated with buying and maintaining your dream home. Click here for some questions you may wish to address.
It is important to develop a family budget. Instead of budgeting what you’d like to spend, use receipts to create a budget for what you actually spent over the last six months. One advantage of this approach is that it factors in unexpected expenses, such as car repairs, illnesses, etc., as well as predictable costs such as rent. Download our Budget Basics Work Sheet found at bottom of the page to assist.
Credit scores, along with your overall income and debt, are a big factor in determining if you'll qualify for a loan and for what loan terms you'll be able to qualify. To get your personal credit report, learn how to make corrections, or to learn more about ways to improve your credit, visit https://www.usa.gov/credit-reports.
Even before starting to look at houses, the first step should always be to find out what price house or condominium you can afford. After reviewing your current financial situation, review the ratios that lenders will be utilizing to determine how much home you will be able to afford.
