Ready, set, prep: first steps before you buy a home

Sort out your finances before getting pre-approved

If you are looking to restart your search for a home, it can be tempting to jump straight into getting a pre-approval. But you may want to spend some time sorting out your finances first, as it’ll give you a more realistic snapshot of what you can afford in a fast-changing market. Some areas to focus on:

1. Take a close look at your entire financial profile, including credit score, income, assets and debt. It’ll also give you a head start on collecting the documentation you’ll need to apply for a mortgage.

2. If you’re a homeowner already, first determine how much equity you have. Talk to a realtor about what to expect: What might your home sell for? How long will it take? Do I have to sell before I can buy?

3. For first-time homebuyers setting a budget, remember to factor in the additional costs of homeownership beyond your monthly mortgage payment. That includes things like home maintenance costs, insurance and property taxes, among others that are easy to overlook.

Taking these extra steps can set you up better for a successful homebuying journey.

– Robert Heck, Vice President of Mortgage @ Morty