Are you thinking of purchasing your first home? Before you start viewing homes there are some things you should have in order to prepare for homeownership. Getting these items ready beforehand will make your life easier for when you find your dream home and want to submit an offer.
1. What Can You Afford?
Decide how much home you can afford. Generally, you can afford a home equal in value to between 2 and 3 times your gross income.
2. Create a Wishlist
Develop a prioritized wish list of what you'd like your home to have.
3. Decide Where You Want to Live
Select three or four neighborhoods you'd like to live in, considering education systems, recreational facilities, safety, and more.
4. Down Payment & Other Fees
Determine if you have enough saved to cover your downpayment and closing costs. Closing costs, including taxes, attorney's fee, and transfer fees average between 2 and 7 percent of the home price.
5. Credit Report
Get your credit in order and obtain a credit report. When you apply for a mortgage, the lender will look at your credit score to determine if you qualify for a loan.
6. Determine Loan Amount
Talk to a lender to find out how much of a mortgage you qualify for. Also explore different loans options to best meet your financial situation.
7. Organize Documents
Organize all the documentation a lender will need to pre-approved you for a loan.
8. Research Loan Programs
Do research to determine if you qualify for any special mortgage or downpayment assistance programs.
9. Calculate Final Costs
Calculate the costs of homeownership, including property taxes, insurance, maintenance, and association fees, if applicable.
10. Connect With a Realtor
Connect with a Realtor who can help you through the process of becoming an owner of Vermont Real Estate.