Whether you’re looking to buy a home in an expensive housing market or simply need to upgrade to a larger home for your family, preparation for a higher mortgage is essential.
Between annual inflation costs and growing your household, getting a higher mortgage can be intimidating, but like most significant investments, it only requires a bit of planning and patience to ensure a smooth transition.
In this article, we share some of the most effective ways you can plan and prepare for taking on a higher mortgage –
Start Paying Down Depts & Improving Your Credit
When it comes to buying a home, your DTI (debt to income ratio), as well as your credit score, are two very important factors that will be considered for your home loan approval. That said, when preparing to take on a larger mortgage, one of the first things you’ll want to do is start paying down your debts and improving your credit.
This step can take a little time, which is why it should be one of the first aspects of preparation you closely evaluate and work on.
Determine Your Budget & Save for a Larger Down Payment
Ensuring your finances are all in order and saving for a larger down payment is one of the most important steps to buying a home, especially when upgrading to a larger mortgage. Putting yourself in the best financial position possible is a great way to ensure you have loan rate negotiation power when the time comes.
Being financially prepared and stable also takes a lot of the pressure and stress away from buying a new home, allowing you to actually enjoy the process and make the right decision when you’re ready. With all of your finances and downpayment in order, you know exactly what you’re working with, and finding the right home becomes just a matter of time.
Do Your Research and Plan Ahead
When it comes to buying a home in today’s housing market, knowledge truly is power. Taking the time to thoroughly research all of your options and understand the current housing market will offer you quite the advantage in your home-buying journey.
Be sure to research locations, types of homes you’re interested in, general cost ranges, and even special qualifications for savings wherever possible. You’ll also want to make sure you plan for additional expenses that often come with buying a home, like home inspection costs, closing costs, moving costs, HOA fees, property taxes, insurance, etc.
Work with an Experienced Real Estate Agent
Buying a home can be a stressful process to navigate, and even more so when you’re looking to get a bigger mortgage.
With an experienced real estate agent on your side, you can rest assured that you have an inside support system with a full understanding of your needs and the current housing market, as well as what it takes to bridge any gaps between the two.
An expert real estate agent will be able to offer you professional advice and direct you throughout your home-buying journey. An agent will also be able to guide you to the best options for your budget and your individual needs without you having to compromise your financial security.
If you’re ready to find the right home for you and your family, contact Key Realtors today at 281-454-4500 for home-buying support and expertise you can trust!