- BUYING RESOURCES -
Know your financials first
RESOURCES FOR:
The first step for home buyers isn't to look for a home yet - but to understand how much home you can afford. This section deals with financing.
Getting a grasp on your income, debt, and savings will help you determine how much home you can afford. It will also help you get approved for a mortgage.
FINANCING
Most people finance the purchase of a home and that means getting a mortgage. A very important step in getting that mortgage can be done immediately: do not make any changes to your financial situation!
Lenders will soon be combing over your financial life and they want to see consistent income and spending habits.
WHAT TO DO
For at least three months before applying for a mortgage (and until closing):
- Do not make any big purchases.
- Don’t make any big in- or out-flows from your accounts.
- Don’t apply for other loans or credit cards.
- Above all, don’t change jobs.
WHAT LENDERS WILL LOOK AT
Start getting your financial documents in order now. Having these in place will help speed up the home buying process.
What can you really afford?