Buying a home for the first time is a huge life step to take. Not everyone is fully prepared or knows how to do this. Running through the most important financial steps of buying your first home can be helpful. The last thing you want to do is find yourself stuck in a tricky financial situation. If you ever find yourself stuck in bankruptcy, reach out to a Chattanooga bankruptcy attorney to see what your financial options are.
WHAT DO I NEED TO BUY A HOME?
You probably already know you need a lot of money to buy a home. What you also need is credit and stable employment. House sellers want to know you can afford to pay the monthly payments. This prevents them from losing money to people who are less likely to follow through on a house payment.
The basic steps for buying a home can break down what else you need. First, explore the market and decide what type of home you want, where you want to live, and what your price range is. Having these in mind will tell you what you are aiming for and how much money for a down payment you can expect to save.
Once you have an idea of what you want, start saving for a down payment. The more you save for a down payment, the less you pay later. This could mean lower monthly payments, shorter payment plans, and lower interest rates. Paying 5%-20% of the house cost is a good starting point for how much your down payment should be.
Next, become familiar with how much your closing costs, monthly payments, and mortgage will be. Feel free to ask the home seller. Then, look into how much the taxes for living there will be along with homeowners’ insurance. You may need to make payments on both of these once or more a year.
ESTABLISHING CREDIT AND MANAGING HOUSING EXPENSES
One thing you must have to buy a home unless you have a lot of money is credit. When it comes to buying a home with credit scores, your credit score will determine the deals you have available and whether you can buy a home in some cases. House sellers will look at aspects of credit like:
- Financial assets like savings
- Your history of paying off debt and managing bills
You can seek preapproval for a loan to buy a home before you make the purchase. Other financial aid for home buying includes:
- Homeownership vouchers
- Federal Housing Administration for first home buyers
- HUD homes
- Department of Veterans Affairs home loan programs
- Local Public Housing Agency resources
BANKRUPTCY ATTORNEY IN CHATTANOOGA, TN
Knowing what to do when you are dealing with impending bankruptcy can be challenging to face alone. Feel free to call us at Tom Bible Law today at (423) 690-7712 for a consultation. Our team of Tennessee bankruptcy lawyers might be able to help you escape your financial situation through bankruptcy. You can find us located in the Tennessee cities of Chattanooga and Tullahoma. We are prepared to help you explore all your bankruptcy options.