Purchasing a home, whether it is your first or fourth, is a monumental point in your life. It is one of life’s complex processes, that, when done right, can be full of excitement. However, buying a home can become tedious, stressful and downright awful if you haven’t prepared for it correctly.
At FNB Fox Valley, we believe the right preparation in all matters of your financial life is the best policy. If “failing to prepare is preparing to fail,” then we want to provide our customers with the things they should be considering and acting upon when preparing to buy a home this spring, summer or any time throughout the year.
Improve Your Credit Score
Why it’s important: The better your credit score, the lower your interest rate and down payment. A score of 720 or higher is seen as the benchmark for getting the best rates.
Save Money Any Way You Can
Why it’s important: 1) Lenders like to see that you have money to fall back on just in case, 2) The larger down payment you can make on your home, the less you have to finance, and 3) You’ll need money – between $2,300 and $4,000 on average – for closing costs.
Find Out How Much Home You Can Afford
Why it’s important: Overextending your finances is a sure way to failure; just ask anyone who had their house foreclosed on because they couldn’t afford their mortgage. You can use our Loan Affordability Calculator to help.
Why it’s important: It shows real estate agents and home sellers you are a serious buyer, and also gives you confidence in knowing your price range. FNB Fox Valley’s ReadyBuyer Program is a great place to start!
Find a Real Estate Agent
Why it’s important: Despite the additional cost of using a real estate agent, they have the knowledge to help you find a home that fits your needs and price range. Be sure your agent is a member of the National Association of Realtors.
Continually Assess Your Finances and the Market
Why it’s important: Your finances may change from the time you get pre-approved, as may the housing market. There’s nothing wrong with keeping your finger on the pulse of current conditions.
Whether you are looking to purchase a new home during “home season” this spring and summer or any time during the year, you will want to keep these considerations in mind. If you need help understanding what mortgage options are available to you, do not hesitate to get in touch with the staff at FNB Fox Valley. We look forward to seeing you soon!