Deciding to buy a home is a major life-changing decision. Maybe you’re ready to upgrade from your cramped apartment to a more spacious home. Perhaps it’s near time for you to retire and you want to downsize to a more manageable home. It could be that you’re looking to buy a home for the first time and want to make sure you’re ready. Whatever the reason, our road map will help you know everything you need to know to buy a home and be financially secure.
Buying a home is mostly about financing. Managing your debts, maximizing your income, and raising your credit are all important steps to take in securing the home of your dreams. You don’t want to just buy a home, you want to buy a home that you can afford and be happy in.
Keep Track Of and Improve Your Credit
Managing your financial habits is key to buying a home. This includes your spending, your debts, and the number of open credit accounts you have out there. You may already know your credit score but it’s important to check and make sure that it’s accurate. You can attain a free credit report from each of the 3 reporting agencies once a year. Your credit score is a big determining factor when you decide to buy a home.
Your credit score is determined by your amount of credit you have out, that is how many open lines of credit you have. It is also affected by how often you use these lines of credit and whether you pay your bills on time or not. Credit types can vary from any sort of credit card, whether commercial, retail, or personal, to bank and home loans, personal, title, automobile, or other loans and any short term credit allotted for purchases. All of these things comprise the total credit accounts you have active.
Credit scores range from a low of 300 (poor) to 850 (excellent). A credit score of around 700 is considered in the “good” range.
Form A Plan
Once you have a handle on your credit score, the next step to buy a home is to put together a step by step plan for what you need to do to make that purchase. If your credit score isn’t great, the first step is to try and fix it. This can mean paying off credit cards, refinancing loans for lower interest rates, paying off outstanding accounts, or even canceling cards altogether to close that line of credit.
Once you have that under control it’s time to start doing an inventory of your finances. Take notes on your income and expenses. Debt to income ratio is another factor that determines what you qualify for when you try to buy a home. If you can, try to eliminate any unnecessary expenses. This will give you a baseline of what you have coming in and what you have going out that is mandatory. From there you can begin the next step.
Budget Now Save Now
Living on a budget is something you should get used to before you buy a home because, once you sign on for the financial burden of a home purchase, your lifestyle is likely to change. Mortgage payments can put a dent In your finances so make sure you’re being as frugal as possible is an important step in maintaining financial security once you buy that home.
Saving is another part of being frugal. Putting back a little money every month will help you not only cover the initial cost of buying a home, but it will help you in the event of an emergency. By budgeting and saving, you will set yourself up to be financially stable when buying a home.
Keeping track of your credit, paying your bills on time, having a plan in place, and forming a strategy for budgeting and saving money are all the keys you’ll need to buy a home that you’ll love. When you’re finally ready to buy a custom home in Tampa Bay area, contact Vitale Homes to help you find or build the custom home of your dreams.
Vitale Homes builds new single-family homes in both large and small master-planned communities as well as self-developed neighborhoods throughout the Tampa Bay area, with a particular understanding of the Land o Lakes, Wesley Chapel, Hudson, New Port Richey, Odessa, and surrounding towns of Pasco and Pinellas counties. Whether this is your first home or twentieth home, you’ll experience the Vitale Difference of personalized customizations, exceptional included appointments and finishes, upgrades, and energy features often above industry standards and always above expectations.
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