Many same sex couples make the mistake of not preparing before purchasing their first home. The result is unexpected delays and disappointments. Following are five ways for same sex couples to prepare to own their first home.
1. Calculate the Cost of Owning a Home
The first step is to determine how much home you can afford. You can do this by applying for preapproval from a mortgage lender. Before applying, it would be wise to obtain a copy of your credit report from one of the major reporting agencies and checking to be sure that is no inaccurate information included. If there are inaccuracies, contact the reporting agency to have it corrected before applying for preapproval. Note that the major credit reporting agencies are required under the Federal Fair Credit Reporting Act to provide individuals a free copy of their report once per year.
2. Open a Savings Account
While you are searching for your home, it would be wise to save, or add to your savings, the money needed for your down payment and for necessities that you will need once you move in. Necessities may include a lawn mower, new wicker furniture or other items that you would like to personalize the home, if you need new furniture options then consider going to https://www.homeaccents2.com/bedroom/. You will also want to save some funds to pay for emergency repairs that may occur once you move in. For example, the furnace may go out or your roof may start leaking. It is important to have the funds on hand for those types of repairs should they arise.
3. Organize Your Financial Information
Before applying for preapproval for a home mortgage, you should make sure that you have all of the documents at hand that may be needed. Generally, lenders require your previous year tax returns, statements from your savings and other accounts, and your latest pay stubs. Organize those documents and take them, and any other documents the lender you choose might require, with you when you go to apply.
4. Understand Mortgage Loans
There are a number of options available to low and moderate income buyers to obtain a mortgage, including conventional, Federal Housing Administration (FHA) and Veterans Administration (VA).
Conventional mortgages are those that are not guaranteed by a government agency. These types of loans generally require more money down and somewhat strict credit requirements.
FHA guarantees loans from qualified lenders resulting in more flexible lending practices and lower interest rates.
VA loans are guaranteed by the Veterans Administration and obtained through qualified lenders. These loans do not require a down payment, but do require a funding fee of approximately one to three percent of the loan amount. VA loans are available to service members and veterans, spouses and other eligible beneficiaries.
Note that the above is a sampling and are not the only mortgage options available.
5. Develop a Perfect Home List
Make a list of the type of home that you would like to purchase and what it should include. For example, would you prefer a ranch with a nice rustic wood fence around the property, a house of a certain size, or maybe an old farmhouse? Would you prefer that it has a garage, a small lot or acreage or a specific type of location? A garage’s size is very important, both in cases where you know how many vehicles you will own, or if you will be using the garage as a room for another purpose. There are a few things you can chance with relatively low hassle like a getting a different garage door install, but altering the size of the garage would entail a major overhaul project.
Once you have made your list, you should prioritize it. List the things that you must have at the top of the list. It is unlikely that you will find a home that has everything on your list so you should be prepared to be flexible. If you find the perfect home but it does not have some aspect that you wish, perhaps it is something that you can add once you move in or you may determine that it is not that important considering the other benefits of the home.
Once you are prepared, it would be wise to seek the assistance of an LGBT real estate agent at GayRealEstate.com. He or she will have the expertise to guide you through the home buying process and answer any questions that you may have.
