Grow Financial Federal Credit Union
March 14, 2019

Five Steps to Prep for Buying a Home

Buying a home is serious work. It’s not like you can just walk into a store and pick one off the shelf. Well, you can, if you’re buying a home for Barbie and Ken. The process is involving, and there’s no express lane. But, you can save yourself a lot of the headaches and hassles, money and even time by doing your homework before you go looking for a home. Check out our video to learn about mortgages and how to buy a home of your own.

Buyer, Know Thyself.

Are you ready to buy a home? If the price of one gives you sticker shock, wait until you see the bill for emergency repairs, like a dead AC. And why are you buying? Homes generally do gain value over time, but you don’t buy a home as an investment, to make money. You buy a home as a home, to make a life.

Check Your Finances & Credit.

Got at least $5,000 to $10,000 saved? That should the cover down payment and closing costs, as well as all the fees you’ll pay up front. Is your credit score good, say, in the 680 to 720 range? A better score gets you a lower rate on your loan, and that can save you thousands over time. Have you looked at your credit report lately? It’s available free at annualcreditreport.com. Review it to make sure your financial history is correct.

Get Prequalified for a Loan.

Before a realtor can even show you a home, you need to prove you can buy a home. That means calling around to lenders, like us. Talk to a Grow Real Estate Loan Officer about the best loan for your income and price range. Call us at 800.839.6328, ext. 2694.

Be Real About What You Can Afford.

Just because you may qualify for a hefty loan amount doesn’t mean you should buy the biggest home you can find. Remember, your estimated monthly mortgage payment doesn’t include taxes and insurance, which can also be pretty hefty. Generally, you want to keep your overall housing costs at about 25% to 30% of your annual income.

Get a Realtor.

Have a friend of a friend who dabbles in real estate? Fuhgeddaboudit. Look for a professional, someone who knows your area. Your Grow Real Estate Loan Officer may offer some recommendations, and you’ll also want to ask friends who own homes. Do your research online, and check user reviews. Go with a pro you can trust.

Let the Fun Begin!

You’ve done your homework, now you can go looking. There’s still some more work to do, but we’ll cover that in our next installment, and your Grow Real Estate Loan Officer will be there every step of the way to answer your questions. Happy house hunting!


Posted In: