Let’s talk about real estate: prepare financially to buy a home
So you are ready to buy a new home but you don’t know where to start.
While it can be an overwhelming process, there are many steps on your way.
The first steps are financial preparation for buying a home. You have to start saving money. There are some costs involved in buying a house.
Your lender will require a down payment to secure a home loan.
Your down payment will depend on the type of mortgage you qualify for and the type of loan product your lender can offer.
Some conventional loans are offered at low interest rates to first-time home buyers with excellent credit ratings. Allocating a certain amount of money to save on each paycheck will help achieve this goal.
After speaking with a lender, you will know how much to buy, which determines the size of a down payment.
Closing costs are the fees and expenses that you will need to complete your loan and purchase a new home.
They range from 2 to 5 percent of the loan amount.
Your lender wants you to prepay for the valuation.
Inspections are also part of the closing costs, including but not limited to a home inspection, pest inspection, and well and septic tank inspection.
Your broker can help you select licensed inspectors and advise you on the type of inspections to consider.
You will also need cash after you close your new home.
You may need to have your new home professionally cleaned or buy cleaning supplies. Repainting the house, laying new floors and changing worktops are sometimes done right before moving in.
Small repairs may be required.
You may want to upgrade devices.
Maybe new facility.
Also, security deposits for utilities, changing services you need; all of this requires cash.
And if you don’t have any help, there may be the cost of hiring a moving company.
Carefully researching what you will need for your move can help you see how much money you will have to save.
Preparing to buy a home is the first step on your journey.
And the first part of it is saving money on the expenses you incur.
Ellen L. Heaton
Responsible owner / broker
Heaton Real Estate, Inc.
307 Long circle
Roanoke Rapids, NC 27870