Finally! It’s the time to get out of your apartment and start on the road to home ownership! But what does that mean and how can you be best prepared for whats to come? Keep in mind these four things that can help save you a headache or two!
It’s never to early to be prequalified.
Just starting to test out the waters? Thinking its to early to get prequalified could be a mistake! You never know when your dream house will go on the market, being prepared for it gives you freedom to make an offer!
Make sure you know your credit score
A low credit score can be a nightmare, but knowing what your score is gives you options. Credit repair programs are great at bringing up a low credit score so you can be on track to buying a new home. And who knows, your score might be higher than you
Be sure to calculate PMI into your monthly expenses
A low down payment sounds good to everybody, right? While that low down payment will let you get into your dream home, that does mean that you will have to pay Private Mortgage Insurance(PMI). PMI is added to your mortgage each month and there is nothing wrong with having a PMI, sometimes it can even be in your favor to have one.
Keep in mind closing costs
The down payment isn’t the only money that you have to bring to the closing table, closing costs are an important factor to be considered. Closing costs include a variety of fees, for example the appraisal, which can add up in the end. You don’t want to be blindsided by the closing costs so keep them in mind!