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How To Plan Financially For Your Home Purchase

Posted: March 12, 2020

Plan Financially For Your Home Purchase

Planning to buy a new home? There has never been a better time to draft a detailed budget to determine exactly how to predict your cash flow during the purchase process. You’ll want to prepare a series of documents in order to get set for preapproval or begin conversations with a lender. Have a credit report on hand and take stock of your monthly expenses and income sources to help you calculate your debt-to-income ratio. When working with a lender, you’ll want to show up with bank statements, tax returns, proof of employment, pay stubs, your credit report and any other documentation of assets or debts. Heads up that a credit score of 620 or higher is a typical baseline for preapproval. A lender will be able to determine your maximum loan amount – from there, you can lock in a down payment price, closing costs and an estimate of the total sales price.

Looking for more new home purchase tips? Read our essential checklist for home buyers now!