Financial checklist for home buyers

FALLBROOK – Planning to buy a home in San Diego? Let’s ensure you’re financially prepared with this Financial Checklist for Home Buyers.

Financial checklist for home buyers

• Do a financial checkup. Know your credit score, debt-to-income ratio, and savings. This will give you a clear picture of your financial readiness and help you set a realistic budget for your home purchase. It’s best to reach out to a mortgage officer or financial adviser.

• Get pre-approved. Submit financial documents to a lender, who will assess your creditworthiness and determine how much they are willing to lend you for a home purchase. Having a pre-approval letter gives you a plus points to sellers, letting them know that you are a serious and qualified buyer.

• Save for a downpayment. You don’t need 20% down to buy a home and there are options available for home buyers with smaller down payments. Explore different loan programs and down payment assistance options to find the best fit for your financial situation.

• Review loan options. Familiarize yourself with available assistance programs for homebuyers in San Diego, such as first-time home buyer programs, and government-backed loan programs. Follow us on our social media channels to stay in the loop about these incentives.

• Factor in closing costs. The cost includes fees for services such as attorney’s fees, appraisals, title insurance, escrow, etc. This is around 2-5% of the home’s purchase price.

• Other homeownership costs. Aside from the mortgage payments, budget for ongoing home expenses like property taxes, homeowners insurance, and potential maintenance expenses.

• Understand the mortgage terms. Thoroughly review the terms of the loan, including any potential fees or penalties. Clarify and ask questions about something you don’t understand. Make sure you are 100% comfortable with the terms and fully understand your financial obligations as a homeowner.

• Keep yourself in check. It might be tempting to plan on upgrades on the home right away or go on a home shopping spree before and even after closing. Go ahead if you have disposable income to do so, but if you’re someone on a tight budget, it might be best to avoid making major purchases or opening a new credit card account to maintain your financial stability.

Buying a home is an exciting milestone and entails big decisions that will change your life forever. Have the pros by your side – work with a trusted real estate agent so you can navigate the home buying process with confidence and peace of mind.

This article first appeared on Broadpoint Properties' website, https://servingsandiegocounty.com.

Submitted by Elisabeth Hartig Lentulo, broker associate, who can be reached at 760-532-1057, [email protected] or http://www.ehlentulo.com. CalBRE #01904564