6 crucial steps that Commerce Township real estate experts recommend you take before buying a house 👇
Research closing costs in your area
Closing costs range from 1-6% of the purchase price and vary by location. These are additional to your down payment. DM me for a list of average closing costs in your area!
Save for Your Down Payment
First-time buyers need a minimum of 3%, with an average of 7%. Decide on your down payment and set a limit on your monthly mortgage payment. Use online calculators to see how different down payments affect your monthly payment.
Open a High Yield Savings Account (HYSA)
Like a regular savings account but with better interest. Online financial platforms like Revolut offer 4.24% APY, and Robinhood offers 5% APY, just by having your money sit there. You can withdraw anytime you want! Aim to save 3-6 months of expenses for emergencies. This extra cash can make a big difference!
Research State Grants
First-time buyer grants and assistance are usually provided by the state or city. Google “Homebuying programs + [Your State]” or check out HUD’s website for a list.
Check Your Credit Utilization
Calculate your credit utilization ratio and aim for below 30%, with 10% or lower being ideal.
Learn the Homebuying Process
Educate yourself as much as possible since you’re making a huge investment. Your real estate agent should provide you with a comprehensive homebuying guide.
