If every first-time homebuyer knew this, the world would be a better place!
Whether you’re just embarking on your first real estate journey, or are looking forward to it in the future, here’s the best tip a real estate agent can give you:
Know your finances!
When you understand your financial situation, you’ll make smart, informed decisions quickly, which will benefit you throughout the real estate process.
Here’s what you’ll want to know:
– your credit score: if it’s low, spend time improving it before starting to buy a house. This will help you get a better mortgage rate!
– your monthly income: this will be the basis of any homebuying budget, so understand exactly how much you bring home.
– how much you owe in debt: this amount will also impact your interest rate. If your debt is more than 43% of your monthly income, make a plan to pay it down to that 43% marker before buying a home
Once you understand your finances, you can take that information to lenders and get pre-approved for a mortgage. This shows sellers that you’re serious about buying and have the finances to go through with the home sale.
Based on this, you can see why knowing your numbers can have a big impact!
