Hornet Partners & Preparing Your Finances For Buying a House

Thinking of buying a house?

This year, I’ll be closing on my second house! With more insight this time around, I’m going to be sharing my tips on how best to prepare your finances.

Buying a home is a pretty big deal, and you need all your ducks in a row for the best experience and outcome!

This is a sponsored post. All thoughts and Opinions are 100% my own and not swayed in any way.

Buying a house isn’t as simple as a process as it sometimes appears. Before you start your house hunting journey, you need to make sure your finances are ready.

Know What You Can Afford

While you might be able to afford a $300,000 dollar house now, how stable is your income going to be for a 30-year mortgage?

Often times, people end up getting in way over their heads, when purchasing a house. They buy properties that look nice but require too much upkeep that isn’t affordable. Or, they waste money on houses that don’t really fit their needs.

You think to think practically about your potential new home. How much space do you really need? Can you foresee possible maintenance investments or problems?

Is this a home you can realistically pay off without going bankrupt at worst? Or could you possibly end up “house-poor” with all of your assets going towards your home, just to keep your head above water?

Being honest about your financial situation, future, and what you really want/need, is the first step to take when buying a new house.

Once you identify your basic necessities and abilities, stick to your budget. If you can only afford a home under $250,000 you should try to stay within that price range.

Consult Professionals Like Hornet Partners About Your Debts

Before you apply for pre-approval home loans, you need to make sure your credit score is as high as it can be!

Why? Because not only do loan officers look at your debt to income ratio but the hard-hit your credit score takes itself, can lower your score.

It’s important to have all your debts taken care of before you endure the hard hit, so it’s the best score possible. That’s the only way to get the lowest interest rate you can for your new home.

Hornet Partners can help you regarding low-interest credit card debt. Once you have all debts taken care of, your debt to income ratio will look better to potential lenders.

If the ratio isn’t in your favor, it’s not time to start looking for home loan pre-approval.

Once you take a credit score hard-hit, lenders may not give you the interest rates you want. It’s gonna take time to get your scores back up.

Once Pre-Approved, Don’t Use Your Credit!

This is the hardest for most people.

Once you have your credit scores high, and you get home loan pre-approval, stop using your credit!

Until you close on your new house, avoid buying things like fancy dinners, new cars, or other major purchases. save your credit cards for dire emergencies only.

If your debt to income ratio drastically changes, or your credit takes any more hard-hits, your pre-approval will be null and void.

You don’t want to change jobs, or anything else, that will negatively affect loan application information.

Stay the course, and save the credit card purchases for after closing dates. Your new home will be a reality instead of a dream, and your finances will be better off as well!