When it comes to homeownership, several steps come before purchasing your dream home. Before diving head first into the decision to buy, it is important to be sure that you and your family are prepared physically, emotionally and financially.
Check out these tips to help you get financially fit before purchasing a home!
Calculate your current debt to income ratio, so you know how much you spend each month.
To prepare for increased monthly housing expenses, estimate the increase for a house payment and begin saving that amount each month. This will allow your lifestyle to transition in a way which accommodates a new payment amount.
Your credit score is one factor that will determine the type of loan and the interest rate you may qualify for. Pulling a credit report yourself allows you the opportunity to make sure there are no errors that might affect financing.
If there are errors on the credit report, you can work on having them corrected prior to applying with a lender for a loan.
It is important to reduce delinquency that may appear on your credit report. Of course, it helps to have a report without any history of late payments, but the most important thing is paying delinquent balances prior to applying for a loan.