What You Need To Consider When Buying

These are the three things you have to consider when buying a house.


As a buyer, what do you need to prepare to purchase a home? There are a few things you need to do if you plan to buy a house:

1. Keep your credit score around the 680 mark. Keep in mind that the lender will typically look at all of your three credit reports from TransUnion, Equifax, and Experian. They will check which one falls in the middle. Your credit score may go down below 620; however, it won’t be optimal.

“The higher your adjusted gross income is, the better.”

2. Ready your documentation. This is important because some people do a tax write-off or itemize their tax returns. If you do that, keep in mind that the lender is going to look at your adjusted gross income when you purchase a home. Once the IRS finds out that you’ve been skipping on your taxes during their review, they won’t lend you the loan. As a general rule, the higher your adjusted gross income is, the better it is for you when purchasing a home. You may have to pay more taxes, but this makes it easier for you to qualify for a mortgage. 

3. Consider your savings. If you’re worried about the down payment, we have programs that you can qualify for as little as 3% down. When buying a home, you also have to consider your closing costs. On average, they can run about 3% to 4.5% of your purchase price. 10% may be a good number to have; however, if you don’t have that, you can also do 3% down and 3% for your closing costs, which totals to 6%—the bare minimum you should aim for. 

The seller can contribute to your closing costs, but this will depend on the market. Additionally, the lender may check if you have enough money to afford the mortgage for several months after you’re done with the closing. 

If you have any questions about what to prepare when buying a home, or anything real estate related, call or email us. We’re always happy to help!