How to prepare to buy a home

For some Florida residents, purchasing a new home is a major goal for 2018. The initial step for becoming a first-time homeowner is to check credit scores. Ideally, a prospective buyer will have a credit score of at least 620. Those who are interested in improving their credit scores may do so by raising credit limits or getting caught up on late or missed payments.

Ideally, buyers will not borrow more than they can afford to repay. Potential buyers can determine their preferred price points by going over current income and expenses. As a general rule, a mortgage payment should not be more than 33 percent of a person’s monthly income. In addition to the monthly mortgage payment, individuals should have three months of savings in a reserve account used for maintenance or other costs related to owning a home.

Working with the right real estate agent and mortgage lender can make the process of buying a home easier. A quality real estate agent will let a buyer know where to find homes in their price range and offer other insights into preferred neighborhoods. Quality mortgage lenders may make it easier to get pre-approved for a loan or point first-time buyers toward special loan programs.

There can be many factors that buyers need to consider when acquiring residential real estate. For instance, it may be necessary to determine if a home has a clear title or if there are zoning issues to deal with. Buyers might also want to arrange for a home inspection prior to closing on a home purchase. An attorney could review the terms of a mortgage or purchase contract before a real estate transaction is closed.