March 21, 2016
Written by: Kristin Gross, Asset Building Coach at La Casa de Esperanza
Buying a home is one of the largest purchases you may make in your lifetime, so it’s important to make sure you are ready when you take that big leap! Check out our four steps to help make the process go smoother.
#1 Monitor Your Credit Score
Your credit report is your go-to guide in the home buying process. If you have bad credit, work to pay down debt and raise your score. The higher your credit score, the lower the interest rate on your home loan will be which could save you thousands of dollars over the life of the loan.
#2 Bigger Isn’t Always Better
There is usually a difference between the loan amount you are approved for by the bank and how much you can really afford. Most people just focus on their mortgage payment, but they also need to be aware of the other expenses such as property taxes, utilities and homeowners insurance. Make sure you factor in all those hidden costs so you’ll be covered and won’t risk losing your house, because the added costs didn’t fit into your budget.
#3 Home Buyer 101
Attending a home buyer class will not only give you great information about the home buying process but it will help you qualify for the largest homebuyer grants. Homebuyer Education classes are available through Housing Resources, Inc. or your local bank or credit union.
#4 Give Your House a Physical
Would you buy a car without checking under the hood? Of course not. Hire a home inspector. It’s an extra cost in the process that could end up saving you thousands in future repairs. A home inspector’s responsibility is to provide you with information so that you can make a decision as to whether or not to buy. If the inspector does find issues with the home, you can use it as a bargaining tool to lower the price of the home, or work to get it fixed by the seller before you even move in.
Kristin Gross is an Asset Building Coach for the Financial Stability Initiative at La Casa de Esperanza, in Waukesha, Wisconsin. The Financial Stability Initiative is a partnership between La Casa de Esperanza and the United Way of Greater Milwaukee & Waukesha County. Kristin has her Bachelor’s degree in Personal Finance from the University of Wisconsin – Madison. She is a financial coach and educator working with individuals and families on obtaining tools for financial capability by meeting basic needs, building savings and gaining assets. She enjoys sharing her knowledge of personal finances to positively impact the lives of others.