Are your finances ready to buy a house? Our REALTORS® know getting the right home loan is one of the top concerns buyers have in our area. The sooner you start working out your finances, the easier it is to discover the right lender. That is a major step toward finding the home of your dreams!

Beavercreek homes for sale are some of the most desirable in the state. With the recent shifts in the housing market, many aspiring buyers are finding they can access home financing on better terms than they believed possible. However, there are still important steps you should take to make it simpler for you.

Getting your finances in order is especially important if you plan to buy around the end of the year. There are usually fewer houses on the market, and competing buyers may be well-qualified. Here's exactly what to do:

• Pay Down Debts Where You Can
  One of the most important things you can do to improve your homebuying finances is to raise your credit score. Just a few points difference in your credit score can make a big impact on what you end up paying for a home. One of the best ways to increase your credit score is to pay down debts, starting with your highest-APR credit debts. The lower your credit utilization, the better your score usually is.
  
  
• Don't Take on New Debts
  Avoid taking on new debts where you can, especially car loans and student debt. If you have a large amount of federal student debt, you can reduce its influence on lenders by getting onto an Income-Based Repayment Plan (IBR) and furnishing evidence of the plan to lenders you speak with. Try to avoid major one-time expenses like a vacation. Ideally, you would not take on any new debts within the 12 months before buying a home.
  
  
• Create a Budget
  It's a wise idea to have a budget before you buy a home because it will help you understand how much you can afford in payments before you make a major commitment. A budget can also give lenders greater confidence in your ability to manage your finances. You might need information such as the usual cost of utilities in the area, so connect with your real estate agent to get this data as you compile your budget.
  
  
• Save for a Down Payment
  In the old days, saving up to 20% to 30% of the home's total price was common for a down payment. The bigger your down payment, the better you will look to lenders. However, it isn't necessary to have a huge down payment. Down payment assistance is available through many local nonprofits and government programs. Some lenders will allow gift funds from others to be applied to a down payment, too.
  
  
• Look for First-Time Buyer Programs
  First-time homebuyers have access to a wide variety of special programs intended to help them get through the buying process. These programs are usually established by the federal government and administered directly by a bank or other "conventional" lender. By using one of these programs, you may be able to get a more favorable interest rate on your mortgage, which could save you thousands of dollars over the life of your loan.
  
  
• Decide on Your Priorities
  Everyone who will live in the home should establish 1-2 "must-have" features. Save money by focusing on those top issues rather than on "nice-to-have" items you could trade up to later.

Contact Wright-Patt Realty to find out more or get started.