It might seem odd to think the first step when buying a home is not looking at a home. Getting your finances in order and understanding the money details associated with how to buy a home should be the first step before you consider looking at homes. It will break through a lot of barriers of how much you can afford, how much money you’re going to need at settlement, what type of loan programs you should consider; essentially how do you qualify. And so while looking at a home is fun, it makes more sense to get dirty in the details of how the money works so you can be more confident in the marketplace and buy a home you are going to enjoy the process at the same time. Ask us how.

Often times I am asked, “What is my downpayment?” as a question to how much money one is going to need when purchasing a home. Downpayment and funds to close are not the same. Funds to close is the product of three things; your downpayment, if one is required for the loan program you’re using, your closing costs and your prepaids which include taxes, homeowners insurance, prepaid interest, etc. Those are the three things necessary to understand funds to close and a mortgage transaction. Ask us how.

Sticker shock is one of the biggest reasons why people are anxious when buying a home. However, once you know how mortgage money works, you will likely realize your buying power is stronger than you think. All because you’re using other people’s money.

*Not intended as accounting or investment advice. Contact your financial advisor for advice specific to your own situation.

Even though it is true better credit or great credit will get you better loan terms, it is not true that you need great credit to purchase a home. In today’s mortgage market, one will qualify for a loan and get very, very good terms, or you’re simply not going to qualify. When considering purchasing a home while credit is important, the most important thing to do is to evaluate your credit, your income and your financial reserves to see what loan program will fit best. Ask us how.