Preparing for Home Ownership
Preparing for home ownership is not difficult and should be a very exciting process for you. It’s important to make sure that you have taken the necessary steps to ensure a smooth process. Here is a step by step guide to ensure you have taken everything into consideration and are on your way to owning your new home:
- Determine your budget. Take into consideration your monthly mortgage payment, taxes, homeowner’s insurance premiums, and Association dues.
- Determine your fixed expenses such as car payments, utilities, and all other installment loans that need to be paid monthly
- Determine your revolving expenses such as credit cards.
- Determine your flexible expenses such as shopping, entertainment, haircuts and personal grooming.
- Determine your monthly income and subtract all your expenses to ensure you are not over budgeting
- Most importantly meet with a mortgage professional to determine what financing you qualify for as well as the right financing options for you.
- Have enough money aside for your down payment, closing costs and all moving expenses.
- It’s recommended that you have 6 month’s of reserves in your bank account.
Once you have your financing in place with a preapproval from your bank, you are ready to start viewing homes to find your next home!