Before you set up an appointment with a Realtor to look at homes here in the Vero Beach area, there are some things you should do.
- Figure out what you think you can afford in a house payment. For most people the easiest way to do that is review your current household expenses and your current gross income. If your expenses are around 36% of your gross income, then owning a home could be in your future. Remember, your mortgage payment is only a portion of your expense as a homeowner.
- If you owe quite a bit in credit card debt, car payments and student loans, it would probably be a good idea to start making extra payments in order to get that debt down.
- Run your free credit report and make certain that there is nothing on that report which you weren’t aware of.
- Start saving a little extra money. Lenders like to see that you have a cushion of at least a few months payments when you are purchasing a home.
- Gather all your supporting documents and keep them updated. If you work a regular job, a few months paystubs would be good to have. The past few years of Tax Returns and W2s will also be important.
- Should you be self-employed, a recent Profit and Loss for your business, as well as a few years Tax Returns.
- Copies of the major savings and investment account, including ALL of the pages. Even the blank ones
I am happy to go over any of your income and qualifying information. Don’t worry if you aren’t quite ready to purchase something just yet. It’s always better to be prepared and make a plan than it is to scramble at the last-minute trying to pull things together.
Keep checking back here for more helpful information regarding your purchase or refinance questions.
Brian Denton Blog – Vero Beach, Florida