As the entire world is aware, a fresh new year is ahead of us. Like many others, you’ve probably taken some time to reflect on how this last year has shaken out and you’ve likely set some new goals for yourself. In order to best achieve a goal, we need to map out exactly what needs to be done to get there. If purchasing a home is on your list of resolutions this year, keep reading because we’re laying out exactly what you need to do to crush that goal in 2021.

STEP ONE: Dive into your finances

First off, take a hard look at your current financial situation. It’s important to fully grasp how and where you are spending your money; are you spending money in ways that do your goals a disservice, or are you spending in a way that is laying the path for a solid financial future? Really pay attention and see where you can make adjustments that better align with your goals. While a 20% down payment is not necessary, it’s important to set aside a good chunk of savings when preparing for homeownership. Spending smart by doing simple things like making coffee at home or cancelling that fifth streaming subscription can help the money accumulate faster. 

While you’re taking a careful look at your finances, checking in on your credit is something you should not overlook.  Credit scores are one of the factors that contribute to how low or high of an interest rate you will receive. While our team of Loan Officers are not financial planners, they can recommend certain activities that should boost your credit score if it is in need of repair. They also have a network of financial advisors they can refer you to. Take the time to analyze and improve your credit score, you won’t regret it!

STEP TWO: Understand what you can really afford

Even though we may not have dubbed this step as the first, we’d argue it’s the most important. Knowing what you can really afford is a huge factor in the home buying process and getting pre-approved with a mortgage professional ahead of time can help your home buying journey go smoothly. Our team at Cambria Mortgage will look at your unique and specific situation, your future homeownership goals and the current market conditions to give you an overall picture of what the home buying process will look like for you personally.

Next, with a pre-approval letter in hand, test drive your new budget. Once you know the price range of homes you are qualified to be looking at, start living like you are making that monthly mortgage payment. You may be pre-approved for a certain amount, but that larger payment could limit funds that you use for certain hobbies, travel or other activities you really enjoy. Living with the new payment will give you a true sense of how much you really want to spend before you actually make the commitment. So every month set aside that specific dollar amount… See how it affects your day-to-day life… and if things go according to plan, this will help you increase those savings we mentioned for a downpayment, too.

STEP THREE: Get serious about the house hunt

If you really want to be as successful as possible with your home buying journey, you should consider finding a Real Estate Agent to guide you through the process. Choosing to work with a Realtor can help you target the areas and neighborhoods that best suit your lifestyle… They can offer you exclusive access to homes before they even hit the public market… and Real Estate Agents facilitate the negotiating and contract details. Having a professional on your side can make all the difference. If you’re struggling with this task, your Cambria Mortgage Loan Officer will have a handful of recommendations for you to choose from. 

Of course, the most exciting aspect of home buying, find the one and MAKE AN OFFER! The reality of house hunting often includes making offers on multiple homes, but don’t get discouraged. Having a Cambria Mortgage pre-approval letter in hand can boost your chances of securing the win sooner rather than later. 

STEP FOUR: Dot your i’s and cross your t’s

Like all the others, this step is not one to take lightly. Before you close on your house, you’ll need to button up some final tasks. Prior to closing, you will be responsible for obtaining a homeowner’s insurance policy and an owner’s title insurance policy. With the home under contract, you want to make sure you know exactly what you are getting into before you get to the closing table. Behind the scenes, a title search will be conducted to verify proof of ownership and clear title to the property you are purchasing. You will have the choice of opting in or out of a home inspection. While an inspection is not required, it’s very highly recommended. If the inspection shows big concerns and your purchase agreement states a contingency on the inspection and appraisal of the property, you can cancel the sale. If you don’t want to cancel, you can also request the seller make repairs or give you a credit for the amount it would cost to make the repairs. Your Mortgage Consultant will assist you in navigating all these final tasks and will guide you all the way to the closing table – don’t worry! 

STEP FIVE: Moving day!

The most anticipated day is finally here… Closing day! At your closing, you will sign your mortgage and other legal documents, make any required payments, finalize all the details of your transaction and get the keys to your new home. That’s when it’s time to really celebrate. Grab those keys and unlock your future, you did it!

If you have questions about determining whether or not now is the right time for your home purchase or you’re ready to get serious about your homeownership goals, connect with a Cambria Mortgage professional: www.CambriaMortgage.com / 952-942-0110. Our team is here to help!