You have been thinking about it for a while but have finally decided to try to buy a home. Buying a home is a huge undertaking and should not be done on a whim. Before even talking to your Clagett Enterprises agent, there are some things you should be doing. Let’s take a look.
Check and Strengthen Your Credit
Your credit score rules everything in your life including whether or not you can buy a home or not. Your credit is impacted by past lines of credit as well as your debt versus your income. In order to get a mortgage, your credit will need to be between 620 and 680 in order to qualify. If you are thinking about buying a home, you should start looking into your credit score. If you find something wrong on your detailed credit report, dispute it with the agency in order to increase the overall score. Disputing it could take months but it will be worth it in the end when you own your own home.
Figuring Out Your Debt-to-Income Ratio
It is important for you to buy a home that you are financially comfortable with. Your new home’s mortgage payments should not exceed 31 percent of your monthly income. A realistic debt-to-income ratio will help you come up with a number you are comfortable paying each month.
Build Up Your Savings
Building up your savings should start the moment you start thinking about buying a home. Start putting away money each month to pay for your down payment and closing costs. You should also start saving money for future mortgage payments. Try to have at least three to five months’ mortgage payments in your savings account. This will help your loan application and will be a cushion if you ever lose your job or need repairs done on the house.
Buying a home is a huge undertaking but it can also be an extremely rewarding one. With the right planning and the right agent, you will be settled in your now home in no time!
Buying a Home with Clagett Enterprises!
At Clagett Enterprises, we have extensive experience serving the greater Frederick area and Western Maryland, since 1987. Our team is a full-service real estate company that’s ready to help you with your real estate and residential sales needs. Speak with a Clagett professional at 301-665-6009, or request a proposal for preventive maintenance here.