If you’re a first-time homebuyer looking to secure your piece of the American Dream, there are many factors that go into buying a new house. Many potential buyers are intimidated by the seemingly endless list of to-do’s, ranging from research and planning to saving up enough money, finding a trusted real estate professional, and more. Now may be the perfect time for you to purchase real estate in Texas, and the team at B&M Amarillo Homes is here to help!
Our company relies on our unique Phase Building process to procure the best value for each property we build. We have helped thousands of families buy a home in the Amarillo area, and we’re confident that our program can offer an ideal result for your needs. We combine our luxurious new homes with top-notch financing approaches, including property trade-ins, lease-to-purchase programs, and more.
You are likely excited to buy your home, and we want to help generate the best results. Before you contact us to learn more about the B&M process, keep reading for a few of our tips to help you prepare for the homebuying process. Ready to get started? Contact us online to get in touch with Cathleen or Barry today!
Save More Money
While this may sound like the most obvious advice, many buyers do not properly plan when saving for a new property. Buying a new home will likely be the biggest investment of your life, and as such, it’s important to be prepared with a proper amount of savings. Many buyers begin to save months or even years in advance, as more available funding leads to much more convenient outcomes. You will need to calculate your rough down payment amount, potential taxes and fees, and more. Saving money can provide more power for buyers looking for their dream home, so be sure to create your savings plan today!
B&M Amarillo Homes, LP is here to deliver the most value per dollar possible with all of our new homes. By purchasing 40 to 50 properties at a time, our Phase Building allows us to negotiate ideal volume discounts and added savings before construction even begins. The result for you is more house for less money!
Pay Off All Debt
You can accumulate a comfortable amount of cash in savings, but if you do not erase all of your existing debts, the savings account may not be enough to purchase a house! It’s important to pay off any debt you can, as even small amounts can result in big improvements to your credit score (discussed later on). Lenders will look at your income-to-debt ratio as a major indicator of your risk as a borrower. If you have too many revolving accounts that are not paid down, it can prove much harder trying to finance a house. There are many strategies available online to help potential buyers at all levels of debt, so be sure to do your research!
Once you have paid off your debt, make changes to ensure you will not go back into debt unless absolutely necessary. Saving a proper amount of emergency money can help to alleviate any stress or financial concern if life throws any costly curveballs. Once you begin searching for your new home, it’s also important to not take on any additional debt! New credit cards, boats, and other big changes can impact your credit score and may negate your ability to purchase a house!
Set a Budget
Before you buy a home, it’s vital to thoroughly understand your financial picture and the burden of your new property payments. Many buyers fall in love with the perfect property, only to realize that the monthly costs will be too much. Homebuyers must balance the cost of their new property with a variety of existing expenses, which is why many experts suggest a property cost limit of 25% of your combined income. If you make $4,000 a month, plan on looking for properties costing around $1,000 monthly (all rates will depend on your credit score, down payment, etc.).
Buying a home through experienced professionals can help you achieve the right value to match your budget. There are many programs available to help a range of buyers purchase their dream home, so be sure to find the right team for the job!
Monitor Your Credit Score
One of the most important factors of purchasing a home is your credit score. Most lending institutions rely on the Fair Isaac Corporation (FICO) system, which assigns individuals a value ranging from 300 to 850, where higher scores represent lower borrower risks. This score comprises your profile based on five major factors:
- Payment history (35% of score) — A majority of your FICO score will depend on your payment history, including late payments for rent, utilities, and more.
- Accounts owed (30% of score) — How much money you owe can negatively impact your score. Keep in mind that this number is weighed by the amount of credit you still have available.
- Credit history (15% of score) — The length and maturity of your credit history will indicate how established you are. A portion of your FICO score is based on the age of your newest and oldest accounts, as well as the average.
- New credit (10% of score) — If you have recently opened a number of new accounts, your score will drop to reflect this riskier behavior.
- Credit mix (10% of score) — In order to achieve a high credit score, borrowers should rely on a variety of accounts, including vehicle loans, credit cards, and so on.
Contact Us Today
In our next post, we’ll conclude this discussion by highlighting a few more tips to help you prepare for your first home purchase. If you’re ready to learn more about buying a home in one of our Amarillo neighborhoods, be sure to contact us online today!