Before House Shopping

Dated: 10/08/2018

Views: 145

As most people will tell you, there are many benefits to building equity in owning a home instead of paying rent; even if the first few homes are not the "forever home." 
Image found from similar blog, "Are You Ready to Buy a House?" by Chrisie Gray. build equity and resell after X amount of years allows you to upgrade your home, incrementally, until the "dream home" becomes possible. For many people, this process is better to start sooner rather than later. Before you do, here are five things to consider and help prepare.

1. Area

To build equity, one needs to have made mortgage payments for a significant period of time. The simple fact is that two or three years of mortgage payments is not going to accrue to much extra for a down payment to upgrade later. Knowing that it can take closer to eight-ten years for help on the next upgrade house will lead to the thought of your surrounding area: is this where you could enjoy living for the next ten years? This consideration is a good place to start.

2. Loan Pre-qualification

The next step would be to find out what loans and in what amount you qualify for. If you are searching for a home near us here in Frederick, MD, here are a few links to local lenders that I have worked with recently:

Mark Ebinger of RMS

Vince Petrolle of Homebridge

Darren Ferlisi of Integrity Home

Sherrie Smith of Norcom

3. Make Adjustments

For a few buyers, this consideration may be able to be skipped. Your lender should be able to help guide you through what can be done to help your credit score or any other adjustments required to qualify for a loan. Following an action plan can get your qualifications to where they need to be. Even if it seems difficult, don't give up and stick to the plan; there are additional resources to help you with this process, as well.

4. Budgeting

Sometimes, people can be qualified for more of a mortgage than they plan to pay on a monthly budget. Using a mortgage calculator can help you discover what loan amount will keep you within budget. These calculators are easy to find on websites and apps like Zillow,, and even your local lender's website may have calculators to help find that target amount, like this page from the website for Mark Ebinger of RMS. 

5. Savings

Your lender or agent should be able to help with an estimate of closing costs that will need to be prepared for. Some people may also want to make a cash down payment to reduce the loan amount. Alternatively, a down payment may be required for the loan program you have chosen.

Once these considerations have been taken, all that's left is to find the house! Good luck in your journey.
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Ryan Pearson

Ryan Pearson was born right here in Frederick, and grew up in Western Maryland. He studied Business at Shepherd University in the Eastern Panhandle of West Virginia. It was here that he met his wife, ....

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