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Since April is National Financial Literacy Month, BBS Notary wanted to put together a piece about what hopeful homebuyers should know about the financial side of a real estate deal. We know buying a home can seem daunting, especially when it comes to money, but there are caring professionals to help you during every step of your journey home.
Though we’re not likely to see you until you’re nearing the finish line, know that the BBS Notary team is always rooting for you. (Plus, our leader, Jessie Bullis, is a Dave Ramsey follower who wants to see others succeed with their finances, too.)
Without further ado, here are four financial tips for homebuyers that we want to share with you:
Talk to a loan officer. These professionals help you sort out mortgage rates, qualifications and different loan types. Not sure where you stand financially? You can still connect with a lender who can help ensure you’re on the right track. Sometimes, they may even surprise you and tell you that you’re already ready to buy. It’s never too early to talk to a loan officer. Sometimes, buyers find it helpful to speak with a lender before choosing a real estate agent.
Know your credit score. A credit report isn’t the only thing that determines whether you qualify for a mortgage and at what rate – but it’s an important piece of the big picture. If you’re thinking about buying soon, you should make sure your report is accurate. If there are simple steps you can take to improve your score, take them, because it will make a difference.
Organize your finances. There’s a reason the first five steps of this guide to buying a house are all related to money. It’s a big deal. Start by analyzing your income and expenses to understand where your monthly money goes, and then analyze your home plan. We’ll talk more about saving in a second, but it’s also important to pay off debt if you can. Your debt-to-income ratio (DTI) is one of the factors a lender uses to evaluate risk. Plus, lowering your debt will also help improve your credit score.
Save for a down payment. Here’s where we shout that the old myth of needing a 20% down payment does not apply in 2025. However, saving for a new home is still important. Here’s what to know: The typical down payment for first-time buyers has ranged between 6 and 7% since 2018, and often-cited minimums are 3 and 3.5%. Why is saving still key? You can apply any extra stowed-away money to closing costs, maintenance, new furniture or any other common costs the homeownership journey throws your way.
We hope this blog empowers you with the knowledge to pursue homeownership. Buying a home is still one of the best ways to secure your financial future, and all of us in real estate want to help make the adventure a little smoother for all involved. When you need a mobile notary to help finish your deal, BBS Notary would love to be your choice. After all, we provide secure, convenient and affordable solutions for real estate professionals, title companies and buyers and sellers.