6 Steps to Prepare for Home Ownership

Are you ready to prepare for home ownership? Buying a home is a major life goal for many Americans. If purchasing a home this year is on your to-do list, consult this checklist sooner rather than later. It’s not exhaustive, but these six, simple steps are a good start in achieving your goal of owning your own home.

Realtor® Recommended Steps To Prepare for Home Ownership

1. Check Your Credit 

Don’t know your credit score? You should. Your credit score helps determine what your interest rate will be. If your credit score is too low, a lender may even decline you a loan. Even if you have a healthy credit score, it’s important to make sure that your credit report is accurate so that you snag the best interest rate. Check your credit report for free, and be sure to take steps to remove any negative or inaccurate items.

Related: How to Buy a Home in Houston with a VA Loan

2. Build Credit with Revolving Credit Lines 

Having no debt sounds like a great thing until you realize that it can lead to a low or nonexistent credit score. Although diversifying your credit by taking out a car loan or personal loan can certainly boost your numbers, you don’t necessarily need to take on significant debt to build a solid credit score. Simply opening up a credit card can help. Charge necessities like gas and groceries, and pay in full monthly so you don’t rack up interest. You might even qualify for a card with cash-back or travel bonuses!

3. Create a New Savings Account

You probably already have a savings account, but it can be worth it to start a new one. Why? Because you can do an ACH transfer monthly to help you save for a down payment and closing costs. It can be encouraging to watch that money build up over time. It’s also easier to save for specific expenses outside of your normal savings account since it becomes much clearer where your money is allocated.

4. Research Neighborhoods That Interest You

Knowing roughly how much you need to spend to get the home you want is critical. Some neighborhoods are more expensive than others – and sometimes, this is because of neighborhood perks you might not even care about! Do your research before setting your heart on a specific part of town. You might be able to get all the qualities you want in a new home at a more reasonable rate.

5. Talk with a Mortgage Lender

Talk to a mortgage lender. They will be able to tell you how much home you can actually afford and what your monthly mortgage and associated expenses might cost. Getting pre-approved for a mortgage can take a bit of time, so it’s important to not wait to complete this step until the very last minute. Being pre-approved for a loan can be the difference between owning your dream home and waiting another few months for the perfect home to come along.

Related: 4 Easy Steps To File For A Homestead Exemption

6. Meet with a Real Estate Agent

This is the fun part! Meet with a real estate agent like Angel Fultz to explore what’s up for sale in the area. She’ll tell you all about the neighborhoods you’re interested in, the purchasing process, and how much money you can expect to pay. In a rapidly shifting real estate market, it’s crucial to work with a Realtor® who knows the market well so you pay a fair price, have all your questions answered, and get the kind of home you’re looking for.

Are you interested in buying or selling a home? Contact us today at 713-364-5883 or info@angelfultzrealty.com.