Are you sure you're ready to buy? Here's a checklist to look through plus a great video demonstrating someone who is not really ready to buy. Remember, if you're unsure, give us a call. We love helping folks that are ready to buy as well as those who just need advice and steps to head in the right direction.
1. Do you have a job?
Lenders will want to make sure you have a stable job and can pay your bills on time. Even if you don't have a credit card or credit card history, lenders will verify utility bills and rent to make sure you have been consistent in paying on time every month. They like at least a couple years of this type of behavior. Lenders also want to make sure your job is stable enough to support mortgage. If you are under contract or have a temporary job, they may want to see something more stable and permanent.
2. Do you have money set aside?
While it is possible to buy a home with zero money down in some cases, the rule of thumb that lenders look for is at least a month or two of payments saved up. They want to know that if times DO get hard, you will be able to make your mortgage payment while correcting your financial situation.
3. Do you know why you're buying?
Owning a home is not just a status symbol. It's a major responsibility. Check out this video below and consider whether or not you're looking to buy for the right reasons.
4. Have you been pre-approved with a lender?
This is more than just a quick phone call or mortgage calculator. This is an in-depth look into your actual finances to determine how much money your budget can afford to put toward a home purchase and loan. Once you have been deemed capable of making house payments, the lender should issue you a pre-approval letter to be presented to sellers when you submit an offer. This shows the seller you have done your part in preparing to buy this house.
5. Are you going to stick with one agent or do this on your own?
We highly recommend you find a buyer's agent you feel comfortable with and stick with him or her. Using a buyer's agent that gets to know your finances, budget, needs, wants, and personality can really make a huge difference in negotiating for your terms and your price. Using a buyer's agent can actually save you thousands over just using the listing agent for both sides of the transaction.
6. Are you going to stay in the house for a good bit of time?
If you know you will only be in a house for several months or a year or two, it may not be the right time to buy. If you are keeping the house for investment purposes with plans to rent it later, this is a great idea, but if you plan on selling in less than a year, you may not regain all your equity back out of the home. Consider buying a home if you can stay in the home or at least own it for two years or more.
Lenders are becoming stricter as to whom they offer mortgages. As a buyer you want to be as prepared as possible for home ownership. As your realtor, we want you set up for success from the application process to closing and beyond. We want you to not be satisfied with your purchase but also excited about your new home!
Let us know your current situation and if you're not quite ready to buy we would love to help you set up the right steps to get you into the home of your dreams as soon as you are ready. We would love the opportunity to be your realtor! TN: (931) 427-4411 AL: (256) 423-4411. Info@ButlerRealty.com