Not ready to buy?
Take these steps to get your finances in order so you are ready for the big purchase.
- Prepare a budget. It is easier to save for a down payment if you know where you spend and have a plan.
- Talk to a loan officer about your purchasing power. They will consider your income and your debts to let you know how much you could potentially qualify for. Use this amount as a purchase price for figuring how much your down payment will be. Down payment amounts vary from 3.5% to 5%of purchase price. You can always put more down but this is a minimum. The loan professional will also let you know how soon you will be ready to purchase.
- Think about your ideal location for a home. Most likely it will be close to where you live now, but the further away from the downtown core becomes more affordable. Consider how long of a commute you are willing to take.
- Consider purchasing with a buddy. If you share an apartment or home now, it would be similar and you would share the mortgage payments. Be sure it is a good friend though!
- A rental resource is wpmsouth.com. When you sign a lease, think about how soon you will be ready to purchase. Some landlords for apartments or homes allow for a 6 month term.