When it comes to purchasing a new home, using the assistance of experienced UHCU Loan Specialists who know the process inside and out can help make the experience smooth and free of unnecessary stress. Like any regimented process, there are certain steps that simply have to be done by the book. However, there are some items that can be checked off the list early that can save you time and money down the road. Below, you’ll find a list of 6 tips and tactics for buying your home.
1. Keep Your Spending In Check
It’s important to keep your money where it is and avoid any large changes in your credit prior to buying a home, such as opening a new credit card or purchasing a new car. Be sure to speak to a UHCU Loan Specialist so that they can help you understand what to do to prepare as early as possible.
2. Get Pre-Qualified
Just like getting all of the ingredients together before making a meal, getting pre-qualified helps you know how much home you can afford. Pre-qualification also lets sellers and real estate agents know that you’re a buyer who is serious about finding a home. If it comes to negotiating on a home with several offers from multiple buyers and only one is pre-qualified, many times the bidder who is pre-qualified will come out the winner.
3. Know What You Can Afford
Knowing what you can afford is as simple as it sounds. Just like you wouldn’t purchase a gift for $100 dollars when you only have $75 to spend, the same philosophy applies when buying a home, albeit on a much larger scale. One tool that can help is a mortgage payment calculator. These are often used to get a sense of how much you can afford to borrow based on your monthly income. There are also several calculations that could be helpful in the early stages of figuring out your home budget, such as making sure your monthly payment is 30% or less of your take-home pay.
4. Planning for Your Down Payment
In general, the higher your down payment, the easier it will be to qualify for a mortgage loan and negotiate the lowest rate. In the event that your down payment is low, your UHCU Loan Specialist will be able to make recommendations to help you purchase your dream home.
5. Consider Additional Costs
In most cases, purchasing a home can involve more than just monthly mortgage payments. For example, closing costs, property taxes and insurance will most likely need to be factored in. Additionally, you may also have to budget for utilities, general maintenance, renovations, repairs, and upgrades.
6. Documents and Forms
One universal rule for helping to facilitate a smooth purchase is taking steps to ensure everything is in place. This is especially true when it comes to forms and documents. Of all the paperwork involved, the most commonly requested documents include financial statements for bank and brokerage accounts, pay stubs, and previous W2s. There is a high probability you’ll need one or many of these, so your UHCU Loan Specialist will work with you early in the process to make sure you have all the correct forms and documents.
If you would like more information or have additional questions about the home buying process reach out to a UHCU Loan Specialist or visit our website today. We’re here to help you every step of the way.