Homeownership is an American dream come true, but you must be ready to accept the challenge. Finding a home that's right for your lifestyle requires an absolute commitment of time and energy. Getting your mortgage approved takes a strong financial commitment as well. 

Our REALTORS® have worked through the buying process with many homeowners in the Greene County area. We know that a positive financial profile is critical to getting what you want. To point you in the right direction, we present: "Right on the Money - Get Your Finances in Order to Buy a Home."

Stabilize Your Financial Life

When a mortgage company looks at your financial picture they look for stability.

• Stay on the Job - Don't change careers before or during your home-buying process. Mortgage companies want to see a consistent 24-month job and salary history. You might be able to explain away sudden changes, but why risk it.

• Pay down your bills - A big pile of monthly bills can muddy your financial picture. Pay off as many as you can. It will enhance your credit-worthiness and free up money for future home expenses.

• Don't open any new accounts - Your mortgage company may approve your loan, but they'll likely run another credit check before closing. New financial obligations may lead to a reconsideration of your loan or interest rate.

Start Saving

When you get serious about home-buying, upgrade your savings efforts. Make it easier with automatic deductions from your pay or checking account. And remember, if Aunt Tillie gifts you $10,000, be prepared to explain that or any other large transactions.

Your financial cushion must be large enough for your down payment. Traditionally, that's 20% of your home price. It can be lower for mortgages backed by FHA, VA, Fannie Mae, or Freddie Mac. You should also prepare to handle a long list of home-buying costs.

• Closing costs - 2% to 5% of your home price
• Loan points
• Home and Mortgage Insurance
• Packing and moving
• Appliances and furnishings
• Home maintenance and repair
• Increased utility bills, and others

Stop Spending

You must eat and pay your bills of course, but you can build your nest egg faster by cutting back on discretionary spending. You might be surprised how much money you can save by commuting instead of driving, packing your lunch, and reducing entertainment expenses like those $100 monthly cable bills.

Manage Your Credit

Before the mortgage company reviews your finances, take a look at them yourself. You can access free credit reports from Experian, TransUnion, and Equifax at annualcreditreport.com. It can feel a bit intimidating, but it's better to correct, resolve, dispute questionable issues before they sabotage your mortgage approval.

Understand Your Ability to Pay

Even if you don't address mortgage affordability, your mortgage company will. You can do this one of two ways. Play around with an online mortgage calculator like the FHA's "How Much Can I Afford." Try inputting proposed mortgage amounts and viewing the results. If you've already found the home of your dreams, input the actual purchase price, down payment, and interest rate to see your potential monthly mortgage costs and decide if you can afford it.

Get Pre-approved

Pre-approval allows the mortgage company to look at your finances and decide if you're credit-worthy. It's not a commitment to finance, but the pre-approval letter shows sellers you're financially ready to buy.

Your Real Estate Professionals in Greene County

We want to help you through the home-buying process. Contact Wright-Patt Realty if you're buying or selling a home in Greene County, Ohio, or if you want to know more about the communities we serve.