The Road to Homeownership

Owning a home is always thought of as “The American Dream.” But homebuyers who don’t have a plan to follow could watch their dream turn into something closer to a nightmare. Even the writers at CNBC advise it’s far from simple when they give their tips to becoming a homeowner.

RBFCU has put together four steps, each with three activities, which can serve as your guide down the road to homeownership.

Step 1: Do your ‘home’ work

GATHER your financial information (recent tax returns, financial statements and pay stubs).

DETERMINE how much home you can afford, amount needed for a down payment and closing costs. Find a useful calculator to assist you with the hard numbers.

GET pre-approved. Work with a lender to obtain a pre-approval letter. This will help during the negotiation process.

Step 2: Find your dream home

RESEARCH areas and neighborhoods of interest, and all things related to the location of your potential home.

CONNECT with a real-estate agent, who will help you to search smarter, not harder.

FINALIZE the offer with all parties’ signatures and earnest money.

Step 3: From contract to home closing

ALLOW time for underwriting, title search, survey and appraisal.

SHOP for homeowners’ insurance.

PLAN your move.

Step 4: The ‘home’ stretch

SCHEDULE a final walk-through and closing.

CLOSE the transaction at the title company.

TAKE the keys. Once funding has occurred, you are now a proud homeowner.

Information in this article is general in nature and for your consideration, not as financial advice. Please contact your own financial professionals regarding your specific needs before taking any action based upon this information.