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How do I buy a home?

To anyone who is considering buying a home, the first simple step you must take is to get prequalified by either a referral from your realtor you choose or a lender of choice. Pre qualification by a lender will give a ballpark of the amount of mortgage you can afford each month. Your income, debt, credit history, and savings are the tools used to determine the amount of approval.

When a lender looks at your income they are considering the type of work you do, stability of your position, and the timeline of employment in your position. They look at this because they have to be sure that your salary will allow you to make your monthly mortgage payment and include your usual living expenses.

Your salary has to also be viewed in combination of your debts. They will see how much money you owe, and how much your monthly expense is to pay your debts. Debts will include; loans, car payments, alimony, hospital bills, etc. anything you owe money on they will be able to pull that information up and consider all those factors while approving you.

Credit history to lenders is another factor to be considered for purchasing a home. It is very important that you find out what’s on your credit report while trying to buy a home. If there were tough times in your past figure out what can be done to have those factors removed by an accredited financial counselor or a credit repair agency. To a lender it is imperative that there is a stable history with a track record of making on time payments. This gives a good indication for future performance.

Last but not least is that you will be required to contribute the purchase of the property with a form of a down payment. You will need a significant amount of money saved for your home which will generally range from 3%-20% of the homes purchase price dependent on your type of loan.

Buying a home is an accomplishment and can be such a rewarding process. It’s always important to find an experienced realtor to help you along the way.


Jamie Lou

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4 thoughts on “How do I buy a home?”

  • Taylor Bishop

    February 22, 2018 at 3:09 pm

    Thanks for explaining how to buy a home. It’s good to know that the credit history is taken into account when you are looking for a home. It sounds like it’s very important to understand this well in advance. Maybe it can also help you understand what you can do to buy a house in the future.

  • Derek Dewitt

    April 17, 2018 at 4:15 pm

    My wife and I are wanting to buy our first home later this year, but we aren’t sure where to start. I like your point about getting pre-approved by a lender first. We’ll be sure to get our income and salaries checked so we can find out what houses we can afford.

    • Jamie Lou

      April 17, 2018 at 8:18 pm

      We have great resources and an awesome, and trusted lender that we could recommended you to. Her name is Chanda with finance of America.

    • Jamie Lou

      April 20, 2018 at 1:26 am

      We have messaged you via email 🙂 Please get back to us!


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