Looking to Maximize Your Home Purchasing Power? Here’s How
We’ve all heard the trendy phrase “purchasing power.” However, not all of us knows exactly what that entails. Surely it just means have more money and buy more expensive things right? Wrong. It’s a little deeper than that. In fact increasing your purchasing power is a process. Not a difficult process on paper but it does require discipline on your part. Here’s how to maximize your home purchasing power.
This entails more than just paying off credit cards. Other ways to eliminate debt is also to move in with family or friends prior to purchasing so that you do not have to document rent or utilities as debt. It will help tip the balance on your debt to income ratio.
Put More Down
Has homebuyers we tend to get wide-eyed with these fancy programs that require 1-3% down. However, if you’re looking to really close a deal and not have to continually battle through bidding wars, putting a larger down payment will help to maximize your purchasing power.
Be Conscious of Credit
For some this can be a sensitive topic. However, this is businesses and you should treat the transaction as such. Be aware of all the things that can help or hurt you during the process such as credit. Know your score and invest in credit monitoring programs that can alert you of things such as fraud or discrepancies.
Know Your Budget
You’ll be a lot more successful securing a home below your budget rather than at or above. It’s simple mathematics. Just because you’re approved for X amount of dollars does not mean you can afford a home at that amount. Things such as homeowners associations, condo fees, parking etc add up pretty quickly. Know what you can afford and stick to that budget.