It’s true that there are quite a few decisions to make when it comes to the financial preparations for buying a new home, but it’s not as difficult as it may seem. The Jones Company has put together a few helpful ways to simplify things, get a big picture perspective, and prepare you to go into the financing process with a clear vision.
1. Know your credit score
By learning what your credit score is first, you can easily accomplish necessary corrective work to repair any blemishes. This adequately prepares you to go to the mortgage lender armed with paperwork explaining anything that needs clarification. Credit Karma is a great place to go to get insight into your credit report, and it’s free!
2. Have an idea of your budget
There are numerous tools online for calculating this, from the simple to the complex. One that lets you input more information, including debts, assets, and other things (and not just income and expenses) are going to be more accurate. You may be surprised at how much home you can afford, but either way, having that insight can help frame how you approach the homebuilding and financing process moving forward.
3. Use a mortgage calculator
To get a good idea of what payments you can expect based on a home’s price and your down payment, the mortgage calculator will come in handy. For many of us, a home will the largest purchase we make, and this valuable tool can help break down that purchase into more digestible terms. You can see how a large or small down payment will impact your monthly payments, and how the speed at which you pay down your mortgage alters the amount you pay in interest.
4. Prepare for a serious conversation with your partner
The best way to go into this conversation is to be prepared, so have a full picture of both of your finances – debt, expenses, expectations for disposable cash, etc. – before sitting down to talk numbers. Think and talk through your financial styles – do you pay bills immediately or wait until the last minute? What about your partner? And dig into your long term goals, so there are sure to be no surprises a few years down the line.
5. Gain a clear picture of your entire financial health
Find ways to save with apps like Mint. Mint is a user-friendly app that pulls financial information from multiple sources to give you a solid and comprehensive picture of your financial health. The upside to having this big picture view is being able to see where you can improve. There may be spots to tighten your belt, making your home ownership dream that much more feasible.
Follow all these steps and you’ll be lightyears ahead of many prospective homeowners. While you’re getting prepared for your move, be sure to explore The Jones Company’s popular floorplans and homes, and you will have an incredibly solid foundation upon which to build your dream home!