Having your own home is the dream of many families and single people too, right? But, what steps must you follow to achieve your dream?
Anything you want to imagine is real
That is why the first thing is to imagine what it would be like to enjoy your own home with your family in the place that you like and make a plan to get down to work.
give it a date
When would you like to open your own house? Define when and how you will achieve your goal. Write a plan with the necessary steps to achieve it and how long you should be completing each stage of the plan.
Define small steps such as:
Do a financial analysis
This will help you to clearly know the current economic situation of your income and what you spend on (rent, services, current debts, maintenance, insurance, health, entertainment, investments, savings, etc).
Create a budget
I wrote an article before with 5 steps to make a budget to buy a house. Please review it when you finish reading this article. It will serve you a lot.
Very good, now that you have a positive analysis of your financial situation and a budget that shows you how much you can save or allocate to your monthly mortgage payment, there are two routes: the first will be to know how much you need for the down payment and how long it will take you to get there to the goal gathering the expected amount; the second, if you already have a significant amount for the down payment.
Check the real estate market to know your offer
What sectors or developments interest you? What prices do they handle? Are they within your budget?
Very well, now that you know how much and in what type of home you can invest, an important step is:
Review your profile or credit situation
Applying for a loan from the bank represents quite an adventure, so it is convenient to prepare in time by building a positive credit history.
If you still do not have one, it is a good time to start or if you already have one, check your status by requesting it from the Credit Bureau. See if there is a need to correct any situation that could harm your scores or if it is possible to improve it before requesting your credit application.
Having a positive track record helps a lot. It is achieved by avoiding exceeding the payment capacity and settling your debts on time.
After verifying your credit status and being positive, what follows is…
Seek the prequalification and pre approval of your credit
The pre-qualification will say whether or not you meet the requirements for the loan you are requesting and the pre-approval means that the bank has collated the information and concluded that you are a viable candidate for a loan for a certain amount.
This gives you the security of being able to make use of a credit, choose between the options that interest you, and considerably reduce waiting times to enjoy a new home.
Seek the support of a real estate agent who will advise you on everything you need to meet your expectations. This will save you time and give you the security that the process requires.
Don’t go over your budget. This is a recommendation that you have probably already considered when making your budget, but then it turns out that when looking for a house and seeing the available options, the temptation to exceed yourself can be very seductive, so avoid giving in and save yourself possible later difficulties.
Last recommendations: Carefully review the entire process and the conditions of your credit as well as the conditions of the property you are about to buy. If in doubt, consult your advisor or real estate agent.
At Yarmoloy Group, we want to help you feel safe and happy to be able to choose your new home, so send us your questions and count on us.