How You Can Still Buy Your Dream Home in 2020

There is a huge financial uncertainty due to COVID-19 as people continue to lose their jobs as businesses suffer. Owing to this home buying in 2020 may look like an intimidating process but you can follow the steps below to buy your dream home. You can also look to mortgage professionals such as Rex Homes for additional information on how to purchase this home.

1. Determine your down payment amount based on your funds: You can begin by analyzing your finances to determine the amount you can pay in down payment. It is usually recommended to put in 20% of your funds but you can consult a mortgage professional and evaluate options to put down less amount.

2. Define your monthly payment amount which will fit your budget: Next, you can evaluate what is a monthly mortgage payment amount that you can comfortably pay. It is suggested to keep room for flexibility so that you do not have to stress financially with your monthly payments.

3. Gather income and asset documents: The sooner you start this step the better. Financial documents can be tricky so allow yourself time to gather all your paystubs, bank statements, asset statements so that you are prepared with your financial document file if you are filing for a pre-approval or if you are consulting a mortgage professional.

4. Get a Pre-Approval Letter: You can contact a mortgage professional and get a pre-approval letter that you can provide to the seller. Such pre-approval letters can show the seller that you are serious about purchasing the house.

5. Shop for your home: The next step involves scouting all the options available as per your requirements and selecting the homes that fit your required criteria. A mortgage professional can help you evaluate all your options and assist you in drafting a formal letter to express interest in the homes you are considering for your purchase.

6. Send an offer: With assistance from your mortgage professional, you can send the offer, negotiate, and seal the deal.

7. Enjoy your new home: Once the purchase has been completed you can relax and enjoy your new dream home!

Saving and Budgeting Tips for your Dream Home

The key to successfully save for a new home is to make regular contributions and follow fixed budgets. You can open a separate savings account and set up automatic monthly payments to avoid any temptations of spending the money you should actually be saving for your dream home. You can also use the below options to add additional cash into your savings:

– Skip leisure travel for a year

– Lower your personal expenses

– Reduce your high-interest rate

– Borrow money from a relative

– Sell some of your investments

– Borrow money from 401(k)

– Get a second job

How can a good mortgage professional assist you?

A good mortgage professional can help you evaluate your income and finances and help you make the best decisions to successfully meet your savings goals. With the economic uncertainty surrounding the pandemic is it important to have a knowledgeable mortgage professional who can guide you through your home purchase process so that you are successfully able to secure your dream home in 2020.

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