The Homebuying Process

in 0 Easy Steps

Are You Ready?

Your Responsibilities

Owning a home is big responsibility and not just financially. When you decide to pursue homeownership, you must know all the risks and responsibilities that come along with it. Here are just some of the responsibilities of being a homeowner:

  • Making your mortgage payments on time
  • Being ready for property tax increase
  • Saving funds for when things go wrong such as, appliances breaking, pipes bursting, insurance claims
  • Being a good neighbor
  • Abiding by city ordinances, or HOA policies (if applicable)

Know Your Finances

It’s important to make sure you’re in the right position to buy. Purchasing a home can be expensive and isn’t something to take lightly. Before applying for a mortgage take a look at your paystubs, where is the majority of your income stemming from? Is it overtime, commission, bonuses? How likely is that going to continue? Then, take a look at your bank statements. How much are spending each month? Is your money going towards things you don’t need? Do you have a savings plan in place? Here are some things to consider:

  • Is your income stable / consistent?
  • What is the job security of your current employment?
  • Do you want to use extra income such as overtime towards your qualifying income?
  • Are you wasting your money or saving it?
  • Do you have a savings plan in place?
  • What are your monthly payments towards credit cards, auto loans, phone bills, etc.? 
  • What’s your credit history and credit score?

Understanding Your Investment

Unlike when you are renting, when you purchase a home, it’s an investment. You should make improvements on your home inside and out, so when it comes time to move or refinance, you have equity. This is one of the major benefits to purchasing rather than renting. Both have their pros and cons. It’s important to know which works best for you.

Renting

  • You're not responsible for home repairs
  • No long-term commitment
  • Utilities may be included in rent
  • Don't build equity
  • Landlord can raise rent

Buying

  • Build equity in your home
  • Tax breaks
  • Change your home anyway you like
  • Financially responsible for the mortgage
  • Responsible for everything inside and out
2. Getting Pre–Approved
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