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What to Consider Before Purchasing a Home

Buying a home is part of the American dream. It is an exciting process with a lot of factors to consider. And those factors extend to much more than deciding which homes in Charlotte NC community to live in, how much square feet you will need, and how many bedrooms you should have. These are the things you should consider before purchasing a home.

  1. Know and understand the importance of your credit score – Your credit score is one of the most important determining factors of the type of mortgage and interest rate you can secure. Knowing your credit score will let you know where you stand and what you need to repair and/or improve your score. You should also look for any discrepancies that may be on your credit report and look to clear those up. The higher the score the more likely you are to receive a lower interest rate.
  2. Get pre-approved by a lender – Before starting your house hunt it is important to know how much house you can afford. That way you do not fall in love with something that is out of your budget. Plus, you will also get an idea of what the loan amount will be as well as the interest rate.
  3. Decide on how much are you comfortable spending – The pre-approval letter will let you know how much house you can afford. But you should only spend what you are comfortable with. Take into account your finances, debt-to-income ratio, student loans, car loans, and other monthly expenses that you will have to make.
  4. Reduce your expenses and debt – It is important to try to reduce and/or eliminate any debts you may have. This will help you improve your debt-to-income ratio. Also look at any expenses that are not necessary such as gym memberships, video streaming services, or even eating out.
  5. Save for a down payment – Most buyers put down at least 20 percent of the total cost of a home. Save for your down payment in addition to closing costs and other expenses that you may incur when purchasing a home.
  6. Narrow down the location – Do you prefer living closer to the city center or do you want something more suburban? How far do you want your commute to be? Would you like to live close to shopping, entertainment, and restaurants? Consider what you would like in a community and pick one that fits your needs.
  7. Select a home that suits your current lifestyle and your future lifestyle – Are you interested in a townhome or single-family home? Do you have a growing family or intend to have one? Will the in-laws be moving in or will you be empty nesters soon? Do not buy a home based on today. Do you need office space? How big of a yard do you want? Think about today as well as the future and purchase a home based on your future lifestyle as well.

Before buying your home, it is also important to be able to envision yourself in it. Contact Vista Homes today at 704-594-4174 or by email at sales@vistahomesclt.com to learn about our available homes that are now selling.