Setting your sights on purchasing a home is a dream many aspire to achieve in live. With this great responsibility comes a bit of intimidation due to all the moving parts. No doubt there my be some intimidation, this is probably the largest responsibility, aside from starting a family, that you will embark upon. To make sure you have a positive experience it is important to save ahead in a responsible manner. If saying for a down payment seems overwhelming, here are a few tips to get you started.
Buy within your comfort zone
All too often, prospective buyers will commit to homes beyond their financial means. On paper, yes, you can afford that dream home, but be prudent about the realistic amount for your current financial situation. At Mortgage Biz of Florida, we want to make sure you are placed in the best loan product for you and your family. Be smart about our first home purchase. Remember to consider the following cost factors when purchasing: mortgage rates, closing costs, down payments, private mortgage insurance, and potential prepayment penalties.
Set a Goal
With any goal, make sure it is realistic and achievable. Before you are able to receive special down payment assistance, it is smart to go by the 20% rule, which is the norm for a conventional loan down payment. In the long run your interest rate will be lower if you opt for the 20%.
Smart financial preparation
Your finances should be in tip top shape before purchasing a home. It will save you and your mortgage professional some undue headache in the long run.
- Have an emergency fund
- Reliable income
- Have debt under control
- Credit Report looks decent
With some of these tips, you should be well on your way to saving responsibly for a down payment on your dream home. Should you have any questions, our mortgage professionals are available to answer your questions.