1. Save for a Down Payment
Depending on the loan you want to qualify for, you’ll want to save at least 3 to 20% for your down payment, and will probably have to cover another 1 to 3% for closing costs.
- Cancel unnecessary subscriptions.
- Eat at home, pack a lunch & skip the coffee shop.
- Automate your savings
- Borrow don’t buy!
2. Organize your Finances
You will need a thorough understanding of your finances. You’ll need to be pre-approved for a loan by a lender before you can go house shopping. A preapproval letter provides an estimate on how much you can spend. Before you contact a lender you’ll need to put together a list of financial info including:
- Your monthly income
- The sum of your total monthly debt payments (auto loans, student loans, and credit card minimum payments)
- Your credit score and any credit issues in the past few years
- How much cash you can put down
3. Check & Adjust Credit Score!
- Correct any errors as quickly as possible
- Don’t make big purchases.
- Pay down credit card balances.
4. Find a Real Estate Agent
Visit our agent info page to find a Terra Firma agent! They can walk you through the home buying process from A-Z, provide exemplary industry knowledge and be your BEST advocate during real estate negotiations.
5. Act quickly
Don’t hesitate to make an offer on the “perfect property.” Chances are other people will think it’s perfect too! You don’t want to miss out!