Habits of Successful Winter Garden Homebuyers
Purchasing a home in Winter Garden is a big adventure. It is one of the largest purchases most people will make in their lifetime. Being in a seller's market where inventory is low can mean navigating a few challenges. With the right knowledge of the current real estate market and your finances in buying shape, you can be a successful homeowner.
Key Habits of Successful Winter Garden Homebuyers
Save Up a Down Payment
Making sure you have a significant down payment is important to help you qualify for a mortgage loan. There are different programs that require different down payment percentages. The most common down payment amount is 20%. There are great loan programs that do not require a full 20%, but these may come with a higher interest rate or the requirement to carry private mortgage insurance.
If you are serious about purchasing a Winer Garden home with the best mortgage terms possible it is a good idea to have a goal of saving 20% for that down payment. Successful buyers are serious about saving up for a down payment. Often they will set aside extra purchases and instead put that money into savings to make homebuying goals a reality.
Start a Separate Savings
To make sure that their down payment savings stay down payment savings some buyers will open a separate savings account just for their down payment. This not only makes it easier not to touch this money for other things, but it also allows you to see the progress you are making on putting money aside to purchase a home.
Pretend You Are Paying for a Home
To help you determine if you can truly afford to purchase a Winter Garden home, put money aside for a month or two as if you were already living in and paying for a home. Look at homes in Winter Garden in neighborhoods you would like to live in and at specific homes that have the features you want. Determine the approximate fair market value you might pay for a home you would want to live in and then put this number into a loan calculator to estimate the monthly payment on a loan.
Once you know an estimated monthly home payment you can add in the cost of utilities and maintenance as well as your other bills and living expenses. Now live as if you were making these payments on your current income for a month or two, This will help you determine if you can truly afford the home you need and want or if you need to make adjustments to your purchase plan or make some adjustments to your finances first.
Know Your Personal Finances Very Well
Before purchasing any large ticket item, you want to be sure you are able to afford it. If you are taking out a loan, you want to ensure your finances look favorable to a lender to receive the best loan terms. Make sure you know how much you are bringing in versus how much you are paying out on other loans and obligations, this is your debt-to-income ratio. You also want to know your credit score.
Another good number to know is the amount you have in liquid assets. Liquid assets are things that can easily be turned into cash should you need to utilize them for a rainy day. This can include a savings account, bonds, stocks, etc. Knowing your personal financial details will allow you to assess what your loan application may look like to a lender and if anything, such as your credit score, should be adjusted before applying for a loan.
Knowing what your financial health is and if you are able to comfortably pay for a home will help you to determine an affordable home-buying budget and be ready to purchase your ideal Winter Garden home.
If you are ready to purchase a Winter Garden home contact me any time. I am here to help take the stress out of homebuying and assist with all Winter Garden real estate needs.