Visioning Homeownership – Part 1 of 4
Planning to Buy a House A home purchase is likely the most expensive purchase you will make – so you’ll want to put a lot of thought into purchasing property. It is important to understand all the factors that go into buying your first house, especially where this house purchase fits into your long-term financial […]
Visioning Homeownership – Part 2 of 4
Things to Consider When Buying a House If you are buying a home by yourself, then you only have to consider your needs when listing what you want in a house. However, if you are married or planning to marry, you may need to create a list of priorities and discuss which are necessities and which […]
Visioning Homeownership – Part 3 of 4
Homeownership Goals What personal finance goals have you set for yourself in regards to buying a home? Reaching your goals is possible when they are S.M.A.R.T. – Specific, Measurable, Achievable, Relevant, and Time-bound. For example, just saying that you want to buy a house is not specific, measurable or time-bound. Let’s take a look at each component of S.M.A.R.T. […]
Visioning Homeownership – Part 4 of 4
Cost Related to Buying a House There are several costs that are incurred when it comes to buying a house, including underwriting costs with the lender, transfer taxes, and title charges. Many of these costs are included in the mortgage as closing costs. Properties are most commonly purchased with a down payment and mortgage, but […]
Purchasing a Home with a Mortgage – Part 1 of 4
What Lenders Look For So, you’ve created a S.M.A.R.T. goal for the type of house you want to buy, now you need a plan for how you’re going to acquire that property. You want to balance the house features you’re looking for with the housing expenses that fit your budget. Think through the lens of […]
Purchasing a Home with a Mortgage – Part 2 of 4
Prepare for Pre-Approval The lender will take an initial look at your personal financial situation to determine if you are pre-approved for a loan. The core items the lender will collect and evaluate are: income, debt, and credit score. Let’s take a look at each of these in more detail. Income is based on what you […]
Purchasing a Home with a Mortgage – Part 3 of 4
How a Mortgage is Calculated So, you’ve been pre-approved for a mortgage, and the next step is to calculate monthly payments for a new house. Your lender will use several factors to calculate your mortgage. In this section, we will describe each piece of information and how it applies to the mortgage calculation process. Down […]
Purchasing a Home with a Mortgage – Part 4 of 4
A Real-world Scenario Let’s take all the information we presented in the previous section and connect it to a real-world scenario to see how someone gets prepared to take on a mortgage for a house. Meet Johnny Smith. He is 25 years old, single, and his S.M.A.R.T. goal is to: Buy a 3 Bedroom 1 Bath […]