Before You Look: Financial Preparation for Buying a Home

Before You Look: Financial Preparation For Buying A Home

By Morgan Millogo of Villas in Woodstock

Before you get out and start walking through houses, you need to get all your financial paperwork in order. Here are some things you can do to prepare:

  1. Prove Your Worth - Get together your income documents and tax documents for the last two years.

  2. Check your credit score - A good score is important, but also how much debt you have versus how high your credit limits are will matter.

  3. Inflow/Outflow - Evaluate your monthly cash flow

  4. Know Your Budget - About 30% of monthly gross income goes towards housing costs. What does that look like for you?

  5. Figure Out Your Down Payment - Do you have money saved, or will you need a loan? Get this sorted with a mortgage lender before you shop around.

With all this knowledge and paperwork ready to go, you will make your home buying experience flow much more smoothly!

For any questions about preparing to buy a home or the process of buying a home, check out our “Buying a Home: What You Should Know” blog or contact Judy Steinfeld.