Here are the main costs to consider when saving for a home:
Figure out how much you can spend on a house before starting to shop. Check with a lender to help you navigate this if needed. Johnson Realty can connect you with a list of professional mortgage brokers, lenders and credit unions to help you!
Sometimes a bank will give you a loan for more house than you really want to pay for. Just because a bank says it will lend you $300,000 doesn’t mean you should actually borrow that much. Many first-time homebuyers make this mistake and end up “house-poor" with little left after they make their monthly mortgage payment to cover other costs, such as clothing, utilities, vacations, entertainment, or even food.
In deciding how big a loan to actually take, you'll want to look at the house's total cost, not just the monthly payment. Consider how much property taxes are in your chosen neighborhood, how much homeowners insurance will cost per year. You also want to consider how much you anticipate spending to maintain or improve the house.
Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Take these steps to improve your score.
A variety of mortgages are available. Here at Johnson Realty, we can help direct you based upon these main categories:
At this point, your lender will need to "pull" your credit. They will see the good, the bad, and the ugly. Scared? We get it, and we hear this often. A lender will pull your credit and review documents to verify your income, assets and debt. If you find your credit is not great, a lender can provide you information you will need to correct your credit issues, and move in the right direction toward home ownership.
Having a preapproval letter shows home sellers and real estate broker's that you're a serious buyer and that you are ready to move forward. Applying for preapproval from more than one lender to shop rates shouldn't hurt your credit score as long as you apply for them within a limited time frame, such as 30 days. We suggest discussing this with your lender if you are not ready to buy just yet. Most prequal letter's will expire after a set amount of time, 90 days or so typically, so check with your lender to see how long your letter/approval is good for.
Get agent referrals from other recent home buyers or check out our great reviews here on our Johnson Realty website!
We love our customers! We require all guests to wear masks and sanitize their hands upon arrival due to Covid 19. Ask us about keeping your home safe when you are selling your home during the pandemic! We have some helpful tips!
1246 N Teachey Rd, Wallace, North Carolina 28466, United States
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