If buying a new family home in Danville is in your future, budgeting your finances to afford it is a must for many families. You may have to sacrifice a little, and stick to a strict budget to save for your new Danville home, but homeownership is within your reach. If you are currently renting a home in Danville, here are a few tips to what is needed to make your dream of homeownership a reality.
1. Focus on your credit–When it comes to obtaining a home loan, your credit score plays a major role. A low score can prevent you from buying a home or qualifying for the best interest rate. Annually you should request a free credit report at AnnualCreditReport.com to check for accuracy. If you need to improve your credit score, you should start by paying off any past-due bills you have, and then continue to pay every bill on time. Next, work on reducing the balance on your accounts to less than 30% of the credit limit available on the account.
2. Save up–You want to save up as much money as you can for a down payment on your new home. If you are able, set aside money each month into a savings account as if you were making a mortgage payment. Learn to budget your money, and stay on budget to build your savings. Many experts recommend setting up an automatic transfer of funds directly into a savings account through your bank or employer.
3. Pay down debt–While you are increasing your savings, you also want to do your best to pay down your debt. Potential lenders want to see that you are able to manage your debt and that you can keep your credit-card balances low. If your current debt-to-income ratio is above 50%, you must focus on paying down debt before you should consider buying a home. Most lenders will only provide conventional loans with a 41% debt-to-income ratio.
4. Research–Buying a home may be a few years in your future, but it is never too early to start thinking about what Realtor® you will use and talking with mortgage lenders about how much of a loan you can qualify for. A qualified Realtor® such as myself would be happy to help you with the process.
Now is the perfect time to buy a home in Danville. If you are ready to sell or buy a home, contact me by email or call me, Brad Gothberg, at (925) 648-5326. I have been a real estate professional for 23 years, and my qualifications include the production of over $105 million in sales within the past 5 years.
Brad Gothberg - J Rockcliff Realtors 