NIKOLE
FERRARI 

Before you even step foot in an open house, you will want to get your finances in order. That begins with improving your credit score, paying off old debts, and building up a healthy savings to put down. You'll want to get this done first!

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There are quite a few options when it comes to your down payment including down payment assistance programs that you may qualify for depending on your income. Lenders will typically require you to pay private mortgage insurance (PMI) if your down payment is less than 20% on a conventional loan.

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Once you have your financial ducks in a row, it’s time to start preparing for the house search. The first step is going to be contacting our lender and getting pre-approved for a home loan. Keep in mind that pre-approval and pre-qualification are two different things:

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• Pre-Qualification: Only tells you how much you can afford for a home.
• Pre-Approval: Tells you how much the bank will guarantee to lend you for a home.

 

Pre-approval letters play a role in the offer process plus knowing exactly how much you are approved for can help you stay within your budget. When budgeting for your home purchase, don’t forget to include other costs that will arise like:

• Inspections 

• Appraisals

• Repairs
• Closing Costs (typically about 2-3% of the purchase price)
• And Other Fees

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