Get Financial Advice Before Buying A Home

Buying your first house is a big deal plain and simple. It takes money, time and effort and even when you have it all, the process can still feel overwhelming. If buying a home is something you might consider for the future, set yourself up for success. Even if buying a home is years away and seems like something you won't have to worry about right now, it's still best to talk with a financial expert sooner than later. A financial expert can break things down for you and answer all of your questions. When it does come time for you to buy a home, you'll have all your financial ducks in a row. Trust us, you'll thank yourself later. Balboa Realty, a leader in Orange County Property Management and real estate can help you. 

Interested in buying a new home in Orange County? Call Balboa Realty today: 949-386-8310 

Talk About Debt 

Debt - a four letter word that frightens pretty much everyone. Too much of anything is never a good thing, and too much debt can run you into trouble. As a general rule of thumb, you need 2 dollars of income for every dollar of debt to offset it. In order to qualify for a mortgage loan, lenders don't want to see more than 15% of your income go to paying off debt. Lenders also are required to run your credit report which is a good representation of your available credit. Before you reach the stage of actually buying a new house, use this time to meet with a financial professional to figure out your current situation and how you can improve it so that you can eventually qualify for a mortgage loan. The more time you spend planning, the less stressed you will be when it comes time to buy.

Talk About Income

When you go in to have a chat with a financial lender, chatting about your current income is inevitable. All of your past tax information will be reviewed. You will likely evaluate how much you currently make and how much you currently spend per month. This will give you a good idea of the amount of money you have "left over". You can talk about your goals, where you see yourself in a few years and how much money you plan to make. The lender will help give you an accurate idea of what you will likely be able to afford in a few years and what you need to do to accomplish that goal.

Talk About Savings

When it comes to savings, a little bit can go a long way. A financial planner will advise both savings and investing techniques. If you choose to invest your money you might want to do so in a moderately safe fund that will yield results over time. Automatic transfers are one of the best ways to save money. Have a set percentage or amount be taken out of your checking account and automatically transfer it into your savings. When it's automatically done, you will hardly even know it's gone. Even if it's $100 per month, put what you can into a savings account and know that you will reach your goal with time. 

Published on Friday, January 19, 2018