Preparing to Buy a Home - Written by breanna mitola

Preparing to Buy a Home

Whether you are a first time home buyer or a seasoned home owner there are several things to consider as you prepare to buy a home. The home buying process can be overwhelming so it is important to have a good understanding of what to expect during this extensive process.

First and foremost you should have a good understanding of your financial situation. It is important to know what you DTI (debt to income) ratio is. This will be taken into account when you apply for a loan with a lender. Your credit score is another factor that is taken into consideration as far as which types of loans you may be eligible for. Also keep in mind it is best to not make any large purchases when applying for a mortgage. Consider yourself to be on a fiscal freeze during the home buying process.

The most important step in the home buying process is obtaining a pre-qualification letter from a lender. This pre-qualification will not only tell you what type of loan you can use but what budget you must stay in. Many lenders offer various loan types and they have different requirements. It is recommended that you shop different lenders to see what loan options will best suit your needs. 

Keep in mind you will need to have money set aside that will be needed at various times throughout your home buying process. Closing costs on a home consist of a specific percentage down for the house, taxes, bank, mortgage, title and attorney fees. Additional items that you will need to pay for during your home buying process is an inspection, an appraisal, and homeowners insurance.

Even though you may qualify for a certain loan amount, it is important to know what you are comfortable spending monthly on your mortgage. Your monthly payments will generally include the mortgage principle, mortgage interest, taxes on that specific property, homeowner’s insurance and PMI (private mortgage insurance) if applicable. 

Once you have a good understanding of the topics mentioned above the next step is to start your home search! It’s important to have a knowledgable real estate agent by your side to help educate and guide you through this process. I am dedicated to my clients and will always keep their best interest in mind. 

-Breanna