Financial Fundamentals for First-Time Homebuyers | MyKCM

Are you prepping to buy your first home? If so, one of the steps you should take early on is making sure you’re financially ready for your purchase. Here are just a few of the financial fundamentals you’ll need to focus on as you set out to buy a home.

1. Get your credit score: A good credit score is essential for getting approved for a home loan. Before you start the home-buying process, get your credit score so that you know where you stand.

2. Have a budget: Before you start looking for a home, create a budget that outlines how much you can comfortably afford to spend on your monthly mortgage payment. Consider the total cost of homeownership including closing costs, taxes, insurance, and maintenance.

3. Save for a down payment: Most mortgages require a down payment of at least 3% of the purchase price. Try to save up as much as you can for a down payment so that you can reduce the amount you need to borrow.

4. Get pre-approved for a mortgage: Pre-approval means that a lender has reviewed your financial information and given you an estimate of how much they are willing to lend you. This can help you narrow your home search and make sure that you dont end up buying a home that you cant afford.

5. Shop around for the best mortgage rate: Different lenders offer different rates and terms, so its important to shop around to find the best deal. Compare

Bottom Line

If you’re ready to get the homebuying process started, let’s connect so you can begin to build your team of professionals today.