8 steps to take before you buy a home
Simplify the home buying process by making a few smart moves before you start your search.
Tags: Mortgage, Home, Home buying, Loans
Published: December 13, 2019
House shopping can be an exciting process, but it takes time and preparation to get ready to buy a home. These eight tips can help you start off on the right foot. If you're ready for the next step, or have more questions about the home buying process, contact a mortgage loan officer.
PREPARING FOR A PURCHASE
WHAT TO DO BEFORE YOU START HOUSE SHOPPING
GETTING STARTED
1. Confirm your credit score
Credit scores are among the first indicators a mortgage lender will look at, so find out where you sit on the spectrum and correct any reporting errors that could be holding you back. [1]
2. Start building better credit
You'll always thank yourself tomorrow for strengthening your score today, so keep card balances in check, make payments on time and raise your credit limit if possible
3. Buy or rent?
Homeownership may be the ultimate goal, but in some situations it may make more financial sense to keep renting over the short-term until you can set aside a larger down payment. [2]
GETTING SERIOUS
4. Monitor the market
If buying is the right decision for you, it's time to identify targeted neighborhoods and research local listings.
5. Set your ceiling
Determine how much house you can afford by aiming for a total monthly mortgage payment that is no more than 1/3 of your gross monthly income. [3]
6. Build or buy?
Consider the costs of remodeling an existing home to meet your needs against the expense of crafting a new property to your specifications. The numbers could be closer than you think!
GETTING READY
7. Get pre-approved
Real Estate Agents recognize mortgage pre-approval as the sign of a serious buyer. After enlisting a Loan Originator to verify your financial profile, you'll be able to approach agents with confidence.
8. Start saving
Down payment requirements will vary, but be sure to understand how your initial investment will impact long-term payment obligations.
SOURCES
1bankrate.com/finance/mortgages/6-must-dos-before-buying-a-home-2.aspx
2realestate.msn.com/article.aspx?cp-documentid=20740546
3 blog-credit.com/2014/02/getting-approved-for-a-mortgage-mean-you-can-afford-it-76174/
Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice. Mortgage, Home Equity and Credit products are offered by U.S. Bank National Association. Deposit products are offered by U.S. Bank National Association. Member FDIC.
Ready for your next home? A mortgage loan officer is a great source to help you navigate the process. Learn more about mortgage and home loan options.
Mortgage and Home Equity products are offered by U.S. Bank National Association. Loan products are offered by U.S. Bank National Association and subject to normal credit approval.
Investment and Insurance products and services including annuities are:
Not a Deposit ● Not FDIC Insured ● May Lose Value ● Not Bank Guaranteed ● Not Insured by any Federal Government Agency
U.S. Wealth Management – U.S. Bank and U.S. Bancorp Investments is the marketing logo for U.S. Bank and its affiliate U.S. Bancorp Investments.
The information provided represents the opinion of U.S. Bank and U.S. Bancorp Investments and is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide specific investment advice and should not be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation.
U.S. Bank, U.S. Bancorp Investments and their representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.
For U.S. Bank:
Equal Housing Lender.
Deposit products are offered by U.S. Bank National Association. Member FDIC. Mortgage, home equity and credit products offered by U.S. Bank National Association. Loan approval is subject to credit approval and program guidelines. Not all loan programs are available in all states for all loan amounts. Interest rates and program terms are subject to change without notice.
U.S. Bank is not responsible for and does not guarantee the products, services or performance of U.S. Bancorp Investments, Inc.
For U.S. Bancorp Investments:
Investment and insurance products and services including annuities are available through U.S. Bancorp Investments, the marketing name for U.S. Bancorp Investments, Inc., member FINRA and SIPC, an investment adviser and a brokerage subsidiary of U.S. Bancorp and affiliate of U.S. Bank.
U.S. Bancorp Investments is registered with the Securities and Exchange Commission as both a broker-dealer and an investment adviser. To understand how brokerage and investment advisory services and fees differ, the Client Relationship Summary and Regulation Best Interest Disclosure are available for you to review.
Insurance products are available through various affiliated non-bank insurance agencies, which are U.S. Bancorp subsidiaries. Products may not be available in all states. CA Insurance License #OE24641.
Pursuant to the Securities Exchange Act of 1934, U.S. Bancorp Investments must provide clients with certain financial information. The U.S. Bancorp Investments Statement of Financial Condition is available for you to review, print and download.
The Financial Industry Regulatory Authority (FINRA) Rule 2267 provides for BrokerCheck to allow investors to learn about the professional background, business practices, and conduct of FINRA member firms or their brokers. To request such information, contact FINRA toll-free at 1.800.289.9999 or via https://brokercheck.finra.org. An investor brochure describing BrokerCheck is also available through FINRA.
U.S. Bancorp Investments Order Processing Information.
© 2021 U.S. Bancorp
