Since the new year is now upon us, many people want to make changes and take new direction in their lives. One of those changes could be purchasing a home in 2015. Before diving into the process, it is important to take certain steps to ensure that you are ready.
1. Credit Check
Check your credit reports and scores with all three credit bureaus: Experian, Equifax and TransUnion. Take this opportunity to carefully comb through each report to ensure there are no mistakes or red flags.
2. Increase Your Savings
A nicely sized savings will help in proving to a mortgage lender that you are capable of paying a mortgage that may be higher than your current rent.
3. Cut Spending
This step goes hand in hand with increasing savings. By cutting down on unnecessary expenses like dining out and online shopping, your savings will rapidly increase.
4. Neighborhood Research
If you plan on buying a home in a different neighborhood, start searching around the area and see if it is a right fit. Visit neighborhood restaurants or coffee shops to get an idea. Also, check into transportation as well. The neighborhood may have great parking but less access to public transportation. Find a place that fits your needs.
5. Find A Lender
Talking with a mortgage lender and obtaining a pre-approval will give you an idea of where to start and how much you can afford.
6. Figure Out Your Budget
After getting pre-approved, figure out how much you are willing to spend by taking a look at your personal budget.
7. Attend Open Houses & Talk to a Real Estate Agent
Once you have the financial aspect figured out, start attending open houses in the area you want to live in and hire a real estate agent who will prioritize your needs.