Buying a house is something that, they say, can take almost a full year to do beginning to end. Housing experts talk about getting your finances in line first, and these 12-months can give you the time to get everything together. But if you don’t have this amount of time, and you have half that, what do you need to do in order to get yourself ready?
Research the House Buying Process
It’s always a good idea to know what the timeline is of buying a house. Luckily, there are infinite resources available. Real estate specialists like Jason Cohen provide handy insights into the house buying process so you can understand what you are in for.
Buying a house can take as long as a year, but can be done in a matter of months. It’s about making sure that all your ducks are lined in a row. And this means becoming aware of the process, ensuring what documents you need, such as a pre-approval letter, but also start to truly think about what you want in terms of your ideal property, in comparison to your budget.
Get Your Daily Expenditure Down Now!
There are a couple of key components to address here.
Firstly, your down payments will make up how much you can qualify for in terms of certain lenders. The general rule in America is that you need 20%. But this is not always the case. Some people can make smaller down payments, as long as they qualify for certain programs, especially for those first-time buyers. For example, Federal Housing Administration-backed mortgages may only require a down payment of 3.5%.
But there can be stipulations to qualify for them, such as paying for mortgage insurance. Secondly, when you are in the process of applying for a loan, mortgage lenders may review your bank statements. It is very important in the run-up to making your application to get your spending as low as possible.
When the lenders review the last few months, they will look at certain patterns. Ultimately, the goal is to look like you are reliable because you do not spend outside of your means. This means avoiding major purchases.
There are plenty of ways to tighten your spending available.
Making Certain Concessions
If the goal is to purchase a house within a matter of months, it is vital to be realistic. While you may not like the idea of purchasing a house that is falling apart, if your budget only allows for a fixer-upper, then you will have to make sure you are ready for this. The great thing about purchasing a fixer-upper is that it gives you a strong footing when it comes to negotiating a lower price.
It’s important to cast your net as widely as possible because this will help you to find a more suitable house.
It isn’t just about the budget side of things, but it’s about making sure that you are in the right frame of mind to purchase a home that may or may not be perfect. But if the bare bones are there, you can make it perfect.
