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10 Steps To Prepare For Dallas Home Ownership

By
Real Estate Broker/Owner with Fathom Realty

Buying a Dallas home is both exciting and terrifying. With Dallas home prices the lowest they have been in years, historically low interest rates, and an $8000 tax credit available to first-time Dallas home buyers, now is an great time to buy a home. Here are 10 steps to help your prepare for Dallas homeownership:

1. Decide what you can afford. Generally, you can afford a home equal in value to between two and three times your gross income.

2. Develop your home wish list. Then, prioritize the features on your list.

3. Select where you want to live. Compile a list of three or four neighborhoods you'd like to live in, taking into account items such as schools, recreational facilities, area expansion plans, and safety.

4. Start saving. Do you have enough money saved to qualify for a mortgage and cover your down payment?  Ideally, you should have 20 percent of the purchase price saved as a down payment. Also, don't forget to factor in closing costs. Closing costs - including taxes, attorney's fee, and transfer fees - average between 2 and 7 percent of the home price.

5. Get your credit in order. Obtain a copy of your credit report to make sure it is accurate and to correct any errors immediately. A credit report provides a history of your credit, bad debts, and any late payments.

6. Determine your mortgage qualifications. How large of mortgage do you qualify for? Also, explore different loan options - such as 30-year or 15-year fixed mortgages or ARMs - and decide what's best for you.

7. Get preapproved. Organize all the documentation a lender will need to preapprove you for a loan. You might need W-2 forms, copies of at least one pay stub, account numbers, and copies of two to four months of bank or credit union statements.

8. Weigh other sources of help with a down payment. Do you qualify for any special mortgage or down payment assistance programs? Check with your state and local government on down payment assistance programs for first-time buyers. Or, if you have an IRA account, you can use the money you've saved to buy your fist home without paying a penalty for early withdrawal.

9. Calculate the costs of homeownership. This should include property taxes, insurance, maintenance and utilities, and association fees, if applicable.

10. Contact a REALTOR®. Give me a call! I am an experienced REALTOR® who can help guide you through the process.

Learn more aboout buying a Dallas home by visiting TexasHomeCentral.com.

Search all Dallas homes for sale.

Reprinted from Realtor magazine with permission from the National Association of Realtors.

Posted by

Josh Harley is the Founder and CEO of Fathom Realty. Josh is a serial entrepreneur, tech geek, innovator, disruptor, marketer, teacher, artist, U.S. Marine, and an Alaska-raised sweet tea fiend.

As the CEO of Fathom Realty, Josh helped earn Fathom a prestigious place on the Inc. 500 list of Fastest Growing Companies in the U.S. … not once, but three times in a row. Josh also made the Swanepoel Power 200 list of Trendsetters for 2017.

 

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