Owning a home here in the Richmond, VA area is an incredible milestone. If you’re planning to make the leap into homeownership, it’s important to prepare your finances so that you can be successful in the long run.
Here are some tips from us at Bacon Insurance Group to help get you started on the right path:
1. Get organized
Make sure that all of your financial documents are in order, including bank statements, credit card statements, investment accounts, and other important information. It’s also helpful to track your spending habits and create a budget for yourself so that you can stay on top of your finances once you become a homeowner.
2. Understand what you can afford
Before purchasing a home, take some time to understand what kind of mortgage payment you can realistically afford by looking at your income and other expenses. This will help ensure that buying a house doesn’t put too much strain on your budget each month.
3. Save up for a down payment
Most lenders require borrowers to pay at least a 20% down payment when purchasing a house so it’s important to start saving up as soon as possible for this expense. Try setting aside money from each paycheck or using tax refunds or bonuses to work towards this goal.
4. Pay off debt
Before applying for a mortgage, try to pay down any existing debt such as credit cards or student loans if possible since high levels of debt could lower the amount of money you’ll be able to borrow from the lender.
We Can Help!
For more tips or to find an insurance policy to cover your new home, give us at Bacon Insurance Group a call today. We are proud to serve the Richmond, VA area.