04/23/2022
Things every should consider before jumping into the real estate market.
What is your motivation to buy a home? Is it stability within your monthly expenses, establishing generational wealth, a yard for your entertaining?
Your debt to income ratio should be less than 56%. This amount includes car note, loans, credit card payments, and mortgages to name the most common.
Your credit score should be at least a 580.
Are you a W2 employee, self employed, receive alimony, child support, commission based?
What is your budget? How much would you want to spend monthly on a mortgage and still afford to live your best life?
What neighborhood would you like to live in?
Do you prefer single family, townhouse, condo, or multi-family?
What are your must haves in a home? Consider bedrooms, bathrooms, turn key.
What is something you would like to have if possible? Consider your dreams.
How much money can you access? Savings, 401k, gift money from friends and family.
Once you find a home, make an offer, and have your offer accepted, you will have upfront costs. These cost include, but are not limited to, earnest money deposit, home inspection, and appraisal.
On closing day, you will need cash on hand that includes your down payment of 0-25% of the purchase price (based on your loan type), and closing costs (about 3-4% of the home’s purchase price). In some markets, the seller can contribute to helping you close on the loan, which is referred to as “seller’s contributions”.
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