First thing is to know your credit score. If you have no idea then let’s get you with a lender who can tell you what your scores are and if you need to do anything to improve your score. Your credit scores determine not only what programs you qualify for but also your interest rate.
Second thing is to know what monthly mortgage payment you are going to be comfortable paying. Many people get qualified for more house than their monthly budget allows them to be comfortable with. So let’s say you want a payment of no more than $1250 a month, then you may not want to spend over $175000 even though you qualify for $250000.
Third thing is to know all of your buying options. You may qualify for several different loans, such as FHA, VA or conventional. Each one will have different loan amounts as well as down payments. So you will need to work with the lender on which one is best for your buying power.
Fourth thing is being financially prepared to buy a home. You may need down payment money according to which loan you qualify for. You may qualify for down payment assistance. With either situation you will always need a minimum of $1500 of your own money to purchase a home. Although this may be gifted by a friend or family member. Always discuss this with your lender and realtor before looking at homes.
Fifth thing is to get pre-qualified prior to looking at homes. When you are ready to purchase you want that letter showing you have buying power to sellers. It shows you are a serious buyer who is willing and able to purchase the home.
We hope this has helped you in starting the buying process. We are here to help you with any more questions and to guide you in the right direction. As always The Dream Team at Kaizen loves what we do and appreciates all of our customers and clients.
Tina Andrade 901-502-0762
Jill White 901-359-9651
Jason Lowe 662-544-2150
Kaizen office 901-221-4041