There are many people who assume that they cannot afford to buy a home. While it is true that some people cannot, it is also true that many people think they can’t when in fact they just need to get organized. Keep reading to learn our best tips on how you can begin to afford a home. Then contact Berkshire Hathaway HomeServices at (310) 373-0021 for help.
Get Your Credit Score Before You Start Looking for a Home
We often see people who begin looking at homes based on the monthly payment they believe they can afford. This makes sense on the surface, but in reality you will need to know your credit score to determine how much you can afford. Find out what the minimum FICO score is from various mortgage lenders, and make sure that you are eligible. Your credit score can impact how much money they require you to put down as well as your interest rate, both of which will affect your monthly payment.
This might seem like an obvious consideration, but people often think that if the loan they are getting only requires a few percents down, they do not need to save money. This is false. Not only do you need money for the down payment, but you need money in case something goes wrong and needs to be replaced.
If you are not able to save now, think about ways that could allow you to do so. This might mean moving into a less expensive rental for a year or two. It could mean taking on a second job for a few years. Remember that once you buy your home, you will have a significant financial asset that is well worth it.
Learn to Be Flexible
It is common for a person who thinks they cannot buy a home to actually be able to afford a home quite easily – just not a home within their price range. There are some things that you should not be flexible on. For example, do not live in a home that is unsafe. Do not choose a home that does not have enough bedrooms for your family.
However, there are many “must-haves” that you might do well to be flexible on. For example, if you want a large yard, ask yourself if that is really important when buying your first home. Remember that once you buy a home you are in the market and can more easily move up to a nicer home. Know your must-haves but be flexible if possible.
It is important to have the right team on your side. You can trust that this is the case when you work with Berkshire Hathaway HomeServices. We are here to help you through the entire process from step one to the end.