8 Steps of Home Buying

8 steps to buying a home

Becoming a homeowner can be stressful. You are looking for the perfect home in the best neighborhood, and then, on top of it all, you need financing. We are going to give you a few tips to make the process easier for you. Whether this is your first home or your fifth, read on to make the process less stressful.

Step 1: Understanding Your Credit Score

Having good credit is extremely important when buying a home. Your credit score helps determine your mortgage interest rate, so the higher your score, the better. Here are a couple of resources to help you understand and improve your score:

FICO Score Breakdown: Understanding Your Credit

How to Escape “Finacial Quicksand”

You can access your credit score in home banking using SAVVY MONEY.

Step 2: Setting a Budget

Think about what you think you can afford as a monthly payment. One rule of thumb is that your debt-to-income (DTI) ratio should not exceed 43%. To calculate your DTI, add your monthly debt payments and then divide that total by your gross monthly income, which is what you make before taxes and deductions.

For example, if each month you pay $1,200 for your mortgage, $250 for your car, $300 for your student loans, and $100 for credit card debt, your monthly debt payments total $1,850. If your gross monthly income is $5,000, your debt-to-income is 37% ($1,850 divided by $5,000 is around 37% DTI).

Debt to Income Calculator

Stop 3: Get Pre-Qualified

By getting pre-qualified for your mortgage loan, it will give both you and your Realtor an idea of your homebuying budge. When it comes a time to make an offer, you will know you are pre-qualified for the loan and know your monthly payment. To get pre-qualified for a Brewery CU Mortgage, call our team at 414-273-3170. Ask for Robert, our Mortgage Loan Specialist. 

Step 4: Find Your Dream Home

Time to tour! With your Mortgage pre-qualification in hand, you can start shopping for and touring homes. Look at local listings, go online, and talk to your Realtor to find the right home for your needs.

Step 5: Make an Offer

This is a big step — and it pays to be prepared. Your real estate agent will provide guidance and help you write an offer to purchase.

Step 6: Securing Your Loan

Yahooo — an accepted offer! Now, you need to finalize the financing and choose the right Mortgage for you. There are fixed rates, adjustable rates, and several term options. You won’t need to navigate this step alone — the Brewery Mortgage Team will help determine which financing option works best for you. 

Step 7: Get an Inspection

You need a professional inspection of the home before closing. This step can uncover any unseen (and potentially costly) issues with the home, so don’t skip it.

Step 8: Closing Time

You are officially a homeowner when the papers are signed and the deal is done. Getting into your new home is a bigaccomplishment. Congrats!

Our Mortgage team is here for you every step of the way, to ease the stress of buying a home. Get started today.

8 steps to buying a home

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