- 1. Look at the Big Picture
- 2. Give Yourself Some (Good) Credit
- 3. Be Realistic
The process of buying a home is exciting: you get to look at prospective houses and imagine your new life being lived inside of them.
You start to plan what color scheme you want to have in each room, where you might place the sofa and gathering around the dining table with loved ones.
But before you go shopping for those new curtains you have your eye on, be sure that all of your financial ducks are in a row, so that you can move into your dream home and hang those curtains as soon as possible.
Consider the following three quick suggestions for achieving financial stability before putting in an offer:
1. Look at the Big Picture
Money is one of the biggest sources of stress for most adults.
Even if you have a great job, you may not be as money savvy as you think.
Make it a habit to sit down at least once a week to go over your bank accounts. Determine whether or not you have any shopping habits that are unnecessary – such as buying too many convenience foods at the grocery store – and make a plan for eliminating bad habits.
This way, you can place the money you are saving into a separate savings or spending account for the things that you may need in order to buy a house.
You can pay for some basic home maintenance before moving in, required repairs, and even furniture without putting your mortgage money in jeopardy.
2. Give Yourself Some (Good) Credit
If you have ever had a loan or a credit card of any kind, you should have a credit history.
Financial lenders will look closely at your payment habits and how much debt you have racked up over the years, so you will want to make sure that things are in order.
A bad – or, depending on which bank you go to, fair – credit score can prevent you from obtaining a mortgage. There are many trusted credit tracking services available to consumers that can help you to get a good idea of where you stand.
If you find something negative on your report, you may want to speak with a few credit repair companies to see if they can help you to get your score where it needs to be.
Most of these services employ attorneys and experts who will evaluate your specific situation and can even act on your behalf if there is something that needs to be cleared up.
Keep in mind that these services are not instant fixes, however, and you will still need to stay on track with paying your bills on time and avoid overusing your credit cards. The key is responsible management of debt and income.
3. Be Realistic
Sometimes it pays to take your time when looking for a home or to purchase what is often referred to as a “starter home”.
It may not be the palace that you had imagined for yourself, but you will gain equity and experience with home buying so that you will be better positioned in the future.
Familiarize yourself with what you can expect to see in the houses in your area so that you can be certain that what you are seeing is probably going to be in most other houses that you look at.
Try not to get your hopes up about having a pool or a sprawling level yard, and focus instead on the value of the home and what you will be able to make of it.
The smartest buys are not always the ones that we imagine: look for a solid structure, a safe neighborhood and comfortable features.
In the end, a home’s livability is more important than any cosmetic or novelty items that may come with it. If you should ever decide to sell the home that you are considering, the buyers will most likely want to know that they are making a solid investment that will hold up for years to come – just like you are doing now.
