5-step guide to financing your chosen home

I can tell you after being in this business for approx 37 years now, it is not a good idea to become completely attached to a home/house/purchase of a house. The best approach and one that I use with my clients is evaluating the purchase so that it makes financial sense. Buying a home because you love it, is not truly a good idea. Your very first step should be #1) Working up your 5 year plan as a couple or individual. Meaning; Understand where you want to be financially in 3 to 5 years. Decide will there be others in your household? Another family member, or children, or even pets. These all change your financial picture and expenses. #2)Make sure you are moving forward with the same agreed upon plan as a couple, or your plan works for you as a single individual for the number of years you plan to own the home. Life happens,yes and there usually are changes that take place. We fall in love, and then a marriage takes place, (more expense), you start your own business (another expense), you have children (another expense).....all good with living, loving and learning. But these decisions should absolutely be considered before making a home purchase. Why? Well, after 30+ years in this business, I've seen the good, the great and the ugly, so I like my clients to take that conservative approach to a purchase. Plus, there are real statistics with home purchases; they tell us our 1st home we tend to keep 3 yrs, 2nd home 5 yrs, 3rd home 5 to 10 yrs and last home, yrs + longer.

#3)Knowing our plans for the next 3 to 5 yrs helps you decide where you want to be regarding your "Budget" for a house payment. This should determine your affordability, NOT the DTI. Work this up before hand with your Realtor so you have a clear understanding of what to look for and also what you tell your Loan Officer you hire to pre-approve your finances for a home purchase. #4) Obtain pre-approval from a local (Not out of STATE, there are too many holes with out of state Lenders)Mortgage Lender. Its important to have a fairly accurate idea of the payment amount your budget can handle. Then work with both your Lender and Realtor on how to get there. Its all in the numbers.

#5) Work with both your Lender and your Realtor to make sure you obtain all the discounts available out there. Experienced Realtors will tell you how to save on your payment, closing cost, Inspections and more. This is very important because it can make a difference for purchasing that nice house or maybe you might be stuck with a Condo....not that Condo living isn't a great option, but it may not be your choice if you are a first time home buyer & you really want to have a yard for the kids or dog or gardening...... Anyways, plan plan plan.

#sellyourhome #financingyourhome #ertrert