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Alison Creamer, Hampton Roads REALTOR®Author: AC&co- Alison Creamer
Hampton Roads Real Estate tips and market information Language: en Genres: Business, Entrepreneurship, Investing Contact email: Get it Feed URL: Get it iTunes ID: Get it |
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Comprehensive guide to home buying prepardness
Episode 44
Monday, 22 September, 2025
Here's a comprehensive guide to preparing for home buying over the next 3-6 months, prioritized by importance and time required: 1. Credit Score and Financial Preparation (HIGHEST PRIORITY) - Time Required: 3-6 months - Impact: MOST CRITICAL - Specific Actions: * Check your credit report and score * Dispute any errors on your credit report * Pay down existing debts * Avoid opening new credit lines * Aim to get your credit score above 700 if possible - Why This Matters: Your credit score directly determines mortgage rates and loan approval. Even a small improvement can save thousands over your loan's lifetime. 2. Savings and Budget Assessment (HIGH PRIORITY) - Time Required: 2-4 months - Impact: VERY HIGH - Specific Actions: * Save for down payment (aim for 3.5%-20%) * Calculate affordable monthly mortgage payment * Build emergency fund (3-6 months of expenses) * Get pre-approved for a mortgage * Determine your total home buying budget - Recommended Breakdown: * Down Payment: 3.5% (FHA) to 20% (conventional) * Closing Costs: 2-5% of home price * Emergency Fund: Separate from down payment 3. Research and Education (MEDIUM PRIORITY) - Time Required: 1-3 months - Impact: MODERATE - Specific Actions: * Research neighborhoods * Understand first-time homebuyer programs * Learn about different mortgage types * Attend first-time homebuyer workshops * Interview potential real estate agents Prioritization Breakdown: 🔴 Most Time-Consuming: Credit Repair 🟠 Moderate Time: Savings Accumulation 🟢 Quickest: Market Research Additional Recommendations: - Get pre-approved before house hunting - Consider first-time homebuyer programs - Factor in additional costs: property taxes, insurance, maintenance - Don't forget closing costs and moving expenses Potential First-Time Homebuyer Programs in Virginia: - Virginia Housing Development Authority (VHDA) programs - Down payment assistance grants - Special loan programs for first-time buyers Red Flags to Avoid: - Large purchases on credit - Changing jobs - Missing bill payments - Opening new credit cards Recommended Timeline: - Months 1-2: Credit repair, initial savings - Months 3-4: Continued savings, mortgage pre-approval - Months 5-6: House hunting, making offers Would you like me to elaborate on any of these steps or provide more detailed guidance on preparing for home ownership?
