Step-by-step tips for buying a home – Part I

Colorado Springs Real Estate recently published an excellent article on how to buy a house, step by step. Over the next few months we’ll break down that article into some easy tips to help guide you through the home-buying process. Today’s topic will be finances.

  • Know your credit history. No matter your financial situation, you’ll need to check your credit history and know your credit status before buying a home. If you find something on your credit report that is incorrect, be sure to resolve it before entering the home-buying process.
  • Calculate your debt. Your debt-to-income ratio is one of the main criteria for obtaining a mortgage. Carefully calculate your expenses and debts to help determine a desired monthly mortgage payment. A mortgage lender or experienced Realtor can offer assistance.
  • Gather financial documents. When applying for a mortgage, you’ll be asked to provide tax returns, employment verification, bank statements and more. Gather this information before looking at homes.
  • Find a mortgage lender. More importantly, find a loan officer and company that you are comfortable working with. Be sure to ask about closing costs, interest rates, speed of closing, etc.
  • Get pre-approved for a loan. A pre-approval letter from your lender will make you a legitimate buyer when you’re out looking at homes. And, a full mortgage pre-approval will help guarantee that your financing doesn’t fall apart at any point during the home buying process.

5 comments on “Step-by-step tips for buying a home – Part I”

  • I can definitely see why you would want to have a thorough knowledge of your credit history when buying a new house. My wife and I have been wanting to move into a safer area for our kids. I’m hoping that we can find a house that would be suitable enough to support our growing family.

  • My husband and I are looking into buying a house for the first time. Before reading this article I hadn’t thought about looking at our credit history. I totally agree that it is so important to find a mortgage lender that you are comfortable with. This article is great because now my husband and I have a good idea of what we need to do to prepare to buy a house. Thank you for all of the information!

  • Our apartment is getting a little on the small side, and we are in need of finding a new place. It will be smart for us to remember that we need to gather our financial documents, that way when we go to apply for a mortgage that we will be all ready. This is very helpful for us so that we can get into a new house sooner rather then later.

  • Thanks for your comment to make sure that you know all your debt and expenses before looking. I like how you mentioned that having your loan pre-approved is better for making sure that your finances remain stable. My cousin is considering looking into house listings so she can move.

  • I liked that you had mentioned that prior to looking for a home that it can be important to calculate your debt and understand how much you can afford on a monthly mortgage payment. My wife and I have been wanting to buy a home for the last few months and we’re wanting to make sure we do it correctly. Once we start looking for houses that are for sale we’ll be making sure we get a home that can fit in our budget.

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