Are You Ready To Buy? Are You Ready To Buy? Freestyle Real Estate

 The first step in Home Ownership is to get your finances in order. 

Follow these steps to begin:

  1. Complete a Budget Worksheet - Use this worksheet to determine all of your monthly expenses and income.  This will help to determine the amount of funds you may have available for a mortgage payment.
  2. Check your Credit Score - Your credit score plays a very important role.  The score represents your payment history and your likelihood to pay your debts in the future.  Check your score regularly to verify that the information on your report is accurate.  A free credit report is available to you annually at www.annualcreditreport.com.  A lender will also be able to check and review your credit report.
  3. Save for Acquisition Costs - Begin a savings account to use towards your downpayment, closing costs, or to purchase items you may need in your new home.
    • Down Payments are often on average a minimum of 3-5% of the sales price (some loan programs vary - discuss with your lender)
    • Closing Costs are additional expenses incurred to acquire the property.  These costs include prepaid taxes, transfer tax, loan fees, recording fees, etc.  The closing cost varies depending on the property.
    •  If you do not have the full down payment in savings, there are other ways to finance these costs.  In some situations, a seller is able to assist the buyer with costs between 3-6% of the sales price.  Each situation varies and is best to discuss specific financing questions with your Realtor or Lender. 
  4. Find a Realtor - Why Choose a Realtor?  It is important to choose a qualified Realtor to guide you through the homebuying process.  Realtors work by a stringent Code of Ethics.  They represent you and your interests through the transaction.  Realtors not only help you locate a home, but work through the transaction from the home search to beyond closing.