Your credit rating greatly impacts the type of property you can buy as well as the price range. We’ll steer you in the right direction in regard to checking your credit score in order to help you to determine what you can afford.

Many homebuyers overestimate what they afford and end up with very little wiggle room financially. Do your homework and to ensure that you have a realistic idea of the annual costs associated with owning a home.

Factor in the mortgage, property taxes, utilities, insurance and repairs so you know where you stand financially and what you can afford. Research all of the costs and to allow a comfortable budget and lifestyle. You don’t what to be strapped to your home and “house poor” with unmanageable expenses. 

It’s understood that to you a home is more than a house, it’s the centerpiece of your life where everything happens. Buying a home is a major life decision. Anticipation and excitement are expected when you find a home that you really love but it’s important to keep a level head. Don’t let your emotions get in the way of your judgement and lead to disappointment. Set-backs can happen if unforeseen problems are discovered in the home inspection or if someone wins an offer before you. Home searching takes time and can be a lengthy process—be prepared for that—it will be worth it when you find the right home and your offer is accepted.

Avoid meeting with sellers and talking about your plans. Even though you have plans to buy and make changes, add personal touches to the home, or even remodel, it’s best to keep it this information to yourself. Keep in mind the current owner will have an emotional attachment to the property. You’ll want to avoid building doubt in the seller’s mind. As a buyer, if you do end up in conversation with the owners, keep the conversation light and friendly.

When applying for a mortgage, every financial transaction plays a part in order to prove to your lender that you have a smooth financial history. Prevent making sudden career changes or large purchases as you prepare to purchase a home. Your property purchase should come from a position of financial stability. Avoid applying for loans, changing jobs or retirement, and do not make any large purchases like buying a car or furniture prior to your loan application and pre-approval. If you switch jobs often or leave your place of employment before applying for a mortgage it can raise red flags. If you are preparing for a job change wait until after your mortgage is approved.

Cash deposits and withdraws also play a part in the mortgage approval process and rate. Avoid withdrawals or deposits of large sums of cash, in order to reflect your financial stability.

When you apply for additional credit it increases your debt and affects your credit report. It can also decrease the amount you will be approved for on a mortgage. Lenders want a clear picture of your capital and how much money you have at your disposal.

Even though a loan may not technically be yours when you co-sign on a loan, it will count towards your overall debt. The amount of your mortgage, and your overall approval rate will be impacted by co-signing a loan. Avoid co-signing any loans until your home purchase is secured.