Buying a new home in Eugene, Oregon may be high on your list of goals that you would like to accomplish in the near future, and fortunately, there are many beautiful homes available for sale throughout the community. Investing in real estate, however, is a major step to take, and you want to ensure that you are ready to make this purchase. Before you begin searching for houses in Eugene or nearby areas that meet your needs, follow these three important steps first.
Look at Your Savings Account Balance
There are many expenses associated with buying a home as well as other expenses related to being a homeowner. For example, when you buy a home, you will need to pay for up-front fees, closing costs, and the down payment. As a homeowner, you will be responsible for the mortgage payment, property taxes, insurance, maintenance tasks, repairs, and more. Take a closer look at your savings account balance to ensure that you are financially ready to purchase a home and to be a homeowner.
Pull Your Credit Report
Next, pull your credit report to learn more about your credit rating. Many home buyers are not aware of what their credit scores are, and some are surprised to learn that some of the items listed on their credit report are false. The time to clear up errors and to improve a low credit score is before you begin actively looking for a new home. Keep in mind that your credit rating will impact your interest rate, and this will affect the loan amount that you can qualify for as well as your monthly mortgage payment.
Review Your Budget
Finally, review your budget carefully, and consider all of the expenses that will change when you become a homeowner. For example, your monthly housing payment, utilities expenses, repair costs, insurance, taxes, and more will all change. Even your commuting costs may need to be adjusted when you relocate. Many people will only look at the difference in the housing payment when determining if a move is affordable, but there are numerous components of a budget that may be affected when you move and buy a home.
Buying a new home can change your life and your financial situation in a number of ways. By following these steps before you make a purchase, you can ensure that you are ready to become a homeowner in Eugene, Oregon.
Top 10 Things You Need to Know Before You Buy a Home, LifeHacker.com, June 6, 2015
6 must-do’s before buying a home, Bankrate.com