Purchasing & Financing
WHERE TO START: RESEARCH
It’s time to ask yourself some big questions:
WHERE DO I WANT TO BUY?
HOW MUCH CAN I AFFORD?
AM I READY TO BE A HOMEOWNER?
And be honest with yourself. Being clear about where you’re at ahead of time can help avoid unnecessary delays during the buying process.
FOCUS AREA: AM I READY?
If you're a first time homebuyer, have a conversation about if you're ready to buy before you even start looking. Here are some important things to keep in mind when you have this conversation:
- Buying a home is a long-term financial commitment. You are responsible for everything. But the financial benefits of homeownership are also long term.
- Budget and savings is key before buying a home. Buying a home requires a down payment, closing costs and moving expenses. You need to have a stable or growing income.
- Your credit score will impact how much you can borrow and at what terms.
- Homeownership is not for everyone.
AFFORDABILITY: FINANCING YOUR HOME
BE REALISTIC ABOUT WHAT YOU CAN AFFORD.
Often times we forget about our smaller, day-to-day expenses when we thinking about budgeting for a house. Your mortgage payment should be somewhere around 25% of your monthly income. Ask our KVK experts about what you can comfortably afford.
QUICK TIP: GET PRE-APPROVED
Getting pre-approved is a great way to know exactly what price range you're working with. Getting pre-approved early can help save time in the buying process.
FINANCING PROGRAMS
NOTE: For all financing programs, we ask that you earn at least a net monthly income of $2,000. Applicants who have had any evictions, judgements, forfeitures, or bankruptcies within the last two years are subject to denial.
HOMEOWNERSHIP PROGRAM
- Most common lending type
- 30 days recent paystubs
- Two months of most recent bank statements
- Last two years of tax returns & W-2's
- Full credit report (500+ score)
- Completed landlord verification
PROPERTIES PRICED $21K-$35K
- 30 days recent paystubs
- 10% down payment required
- Completed landlord verification
PROPERTIES PRICED $20K AND UNDER
- 30 days recent paystubs
- 15% down payment required
FINAL STEPS: CLOSING THE DEAL
You’ve found the house of your dreams and you’re ready to buy. You’ve put an offer in on the house, and the seller has accepted. Before you can close you’ll need to make sure you compete:
INSPECTIONS & APPRAISAL REPORT.
An inspection will make sure the house is in condition to sell. Your inspector will see things that we don’t and most purchase deals are contingent on the home being usable, habitable and in working order. Appraisals are used in connection with the purchase agreement and should be ordered after the results of the inspection are returned and addressed if necessary.
Choosing a community to raise your family is probably one of the most difficult decisions you can make. But with a good amount of research, you can do your best to choose an area that you and your family will love for years to come! Now that you’ve got an understanding of the buying process– take a look at things from the seller’s side.