If your dream is to buy a home, let’s work on making that dream a reality in 2020!! Since Monday was Martin Luther King Day, let’s follow his “I have a dream” speech and think about your dream of homeownership! What do you need to do to make that dream a reality?
One of the first steps is to connect with a realtor and loan officer and decide what you want and what you can afford. You need to decide where you want to live, how long you want your commute to be, what schools you want to be near and what you can afford. You will work with a lender to find out what you can afford, but you also need to set your own budget. I always ask clients what they are comfortable with in a house payment. Just because I can qualify you for a payment, doesn’t mean you want to spend that much. You may have hobbies that cost more than someone else, you may have daycare or maybe you want to buy a new car after you buy a home. Decide what you are comfortable with in a payment and stick to it! No one wants to be house poor!
You will want to make sure you have money set aside for your down payment. Talk to your loan officer and figure out what you need for a down payment. There are programs to help first time homebuyers and with some programs you need as little as $1000 of your own money. Do you qualify for a VA loan? If so, you can buy a home with zero down. Most first time homebuyers will need 3-3.5% down unless you can qualify for a special program. If you don’t have that money now, then you will need to save it. Maybe you have a family member that might help you with a gift – that’s another way to get money for your down payment – just talk to your loan officer about the best way to get the gift money and what documentation they will need.
Are you saving for your down payment? If so, set a budget. Are you paying rent now or are you living at home? If you are living at home and not paying rent, start setting aside the money you would use in a house payment – that can quickly add up to the money you need for your down payment. Maybe you are paying rent now but if you buy a home, the new payment will be more. Set aside the difference so you know that you can afford the new payment and to help you save money for your down payment.
If your dream is to own a home this year, then set your priorities, talk to a lender and a realtor (Sharlene and I would love to help you!!) and set up a plan! Once you know what you need to do, you can figure out how you are going to get there. Maybe you are closer than you thought! Maybe you need to pay down some debt to qualify. Let us work with you to make your dream a reality!!!
Leslie Vanderwerf, NMLS ID#335509, AMEC Home Loans, An Equal Housing Lender, NMLS#150953 – Email – Website
