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New Homes: The "Before" Checklist You'll Want to Consider

by Kimberly Jokela 09/26/2021

Photo by PhotoMIX Company from Pexels

Sometimes getting ready to buy a home feels stressful. But it doesn't have to be when you take clear steps to get financially ready for the exciting world of homeownership. Here are a few quick items to consider before stepping into your new home.

Do You Have a Down Payment?

Depending on the type of home loan you get, having a down payment of at least 20% can save you thousands to 10's of thousands. It's more than it might appear on paper. You save on:

  • Private Mortgage Insurance (PMI) - This varies but is usually between .55% and 2.25% of the total loan amount.
  • Interest - That mortgage rate may seem low, and it is, but it really adds up over 30 years, so every $1000 you can knock off the loan amount can save much more than $1000 because of interest.
  • Origination and other fees - These are often a percentage of the loan amount.

You also build equity faster, so you're in a better financial situation overall.

Figure Out How Much You Can Afford

Ideally, your mortgage payment should not be more than 25-30% of your gross monthly income. If you need assistance figuring out what that may look like or how to get a loan that works for you, contact a financial specialist. You want to make sure all of your financial affairs are in order before starting the home buying process.

Check Your Credit 

You can pull all of your credit reports for free through annualcreditreport.com. Even though this isn't a dot gov site, the US federal government set this site up to provide this free access. You can verify this on the Federal Trade Commission (FTC) sits, which is a dot gov site.

Pulling these will allow you to resolve any discrepancies and understand how good your credit report appears to lenders. The better your credit, the better terms you may qualify for.

Look Into Financing Options

Depending on your current financial and personal situation, you may qualify for a:

  • FHA Loan - Backed by the federal government may work well for people who don't have a full 20% down payment 
  • Conventional Loan - Provides the best terms for those with exceptional credit who can put 20% down
  • VA loan - For veterans only
  • New construction home loan - Designed for people buying a new construction home
  • Builder financing - Getting your financing through the company that is building your new home.

Whether you currently own a home and want to move or are buying your first home, it's critical to take steps to secure your financial future. When you do, you can love the new home you move into, no regrets, just great times with family, friends and loved ones. 

About the Author
Author

Kimberly Jokela

Meet Kimberly Jokela:

With a genuine passion in people Kimberly loves helping her clients make their real estate dreams or needs come to life!

Born and raised in the midwest in a family with a strong work ethic, filled with creativity & dedication.

Her determination lead her to attend college at the "Philadelphia Performing Arts" where she had the opportunity to follow her passion in the Arts & to travel. Living in California with her husband Rick for 15 years together they built a successful business. After the birth of her beautiful daughter Brittany in 2003 & seeking a "small town” coastal lifestyle, they took a trip to Naples Florida & fell in love with all it has to offer and made the jump!

With now over 13 years experience as a licensed Realtor serving Naples, Bonita Springs, Marco Island, Estero & Fort Myers.

A great listener, negotiator & connector, Kimberly is dedicated to helping her clients looking to BUY find their ideal property! .

Her warm & friendly personality is present in everything she does on her clients behalf!

Kimberly’s creativity & "out of the box" thinking gives her clients the extra leverage they need when SELLING a property.

Her well organized marketing includes professionally produced photography, video, drone imagery, media presentation in print, numerous online websites & social media!