Get Ready!

Dated: 10/31/2018

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A client of mine recently told me she’s not ready to buy a home but wants to be prepared to buy a home in about a year and a half.  She asked what steps she could take today to be ready!

 

Here’s a short list of things you can work on to get ready for homeownership.  As the saying goes, “If you stay ready, you won’t have to get ready.”

1.    Talk to a lender to see where you currently stand financially. They will be able to give you a baseline to help you come up with a plan to get your finances ready.  They will also give you a baseline on how much you can borrow. You definitely need to know what you can afford before you start looking at homes. Ask your real estate for recommendations. 

2.    Work on your credit (if needed).  The lender will tell you this too but if you have outstanding debt or items in collections, you want to get those things taken care of as soon as possible. There are credit repair companies out there too.  If you choose to go that route, be careful in your research and make sure you use a reputable company.  It’s never a bad thing to improve your score.

3.    Start saving for your down payment.  There are different loans out there that have different down payment requirements.  FHA loans usually require 3.5% down payment. Conventional loans usually require 20% down payment if you want to avoid paying Private Mortgage Insurance (PMI).  You can put less down on a conventional loan but you'll have to pay PMI.  Check out my blog for down payment info: https://bit.ly/2RFFhBG.  

4.    Take a first-time home buyers class. This will better educate you on the process and the options you have in buying a home.  The Virginia Housing Development Authority (VHDA) has a class that you can take in person or online.  They have grant programs where they'll give you 2-2.5% towards your down payment.  Here's a link to their site: www.vhda.com and a short link to the home buyers class: https://bit.ly/2SxpCoo. There are similar programs in other states. 

5.    Work with a real estate agent. Be sure to find the best real estate agent you can find.  They will guide and support you throughout the entire process.

6.  Get pre-approved for a loan.  After you’ve improved your credit, saved money for a down payment, educated yourself on the process, chosen your real estate agent, AND decided to buy a home, shop around for lenders to see which lender is a good fit for you is. 

 

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Roshawnda "Ro" Humphries

I am many things! I am a native of Flint, MI. I am an engineering graduate from Michigan State University and Illinois Institute of Technology. Being an engineer has afforded me countless opportuni....

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