• Home
  • About
    • Our Realtors
    • Real Estate Resources
      • FAQs About Memphis
      • FAQs For First Time Home Buyers
      • Common Real Estate Terms
    • Our Leadership and Support
    • Community Outreach
    • Memphis Real Estate Blog
  • Our Agents
    • Carrie Anderson
    • Cathleen Black
    • Jeff Blakeney
    • Melanie Blakeney
    • Ashley Bonds
    • Melody Bourell
    • Katie Nichols Cook
    • Jon Dickens
    • Kelly Erb
    • Robin Fauser
    • Golda Frankland
    • Rip Haney
    • Lita Hurston-Reed
    • Laurence Kenner
    • Elizabeth Kuhlo
    • Maria Krahn
    • Jake Lawhead
    • Tracy Dougan Lombardo
    • Jerry Lucius
    • Diane Benson Malkin
    • Hugh Mallory
    • Mindy Okeon Mattingly
    • Thomas Murphree
    • Jordan Nichols
    • Mike Parker
    • Barby Perlberg
    • Jimmy Reed
    • Sheldon Rosengarten
    • Marcy Seidel
    • Stephanie Sheahan
    • Alta Simpson
    • Jim Simpson
    • Myra Sheddan
    • Melonie Sain Simpson
    • Angie Street
    • David Tester
    • Jenny Vergos
    • Ward Walthal
    • John West
    • Lauren Harkins Wiuff
  • Areas We Serve
    • Reasons to Love Memphis
    • Amenities
    • Arlington Realtors
    • Bartlett Realtors
    • Collierville Realtors
    • Cordova Realtors
    • Downtown Memphis Realtors
    • Eads Realtors
    • East Memphis Realtors
    • Germantown Realtors
    • Lakeland Realtors
    • Midtown Memphis Realtors
    • Piperton Realtors
  • Global Connections
  • Contact Us
  • Property Search
(901) 682-1868 Contact Us Log in Menu
Marx-Bensdorf logo
  • Home
  • About
    • Our Realtors
    • Real Estate Resources
      • FAQs About Memphis
      • FAQs For First Time Home Buyers
      • Common Real Estate Terms
    • Our Leadership and Support
    • Community Outreach
    • Memphis Real Estate Blog
  • Our Agents
    • Carrie Anderson
    • Cathleen Black
    • Jeff Blakeney
    • Melanie Blakeney
    • Ashley Bonds
    • Melody Bourell
    • Katie Nichols Cook
    • Jon Dickens
    • Kelly Erb
    • Robin Fauser
    • Golda Frankland
    • Rip Haney
    • Lita Hurston-Reed
    • Laurence Kenner
    • Elizabeth Kuhlo
    • Maria Krahn
    • Jake Lawhead
    • Tracy Dougan Lombardo
    • Jerry Lucius
    • Diane Benson Malkin
    • Hugh Mallory
    • Mindy Okeon Mattingly
    • Thomas Murphree
    • Jordan Nichols
    • Mike Parker
    • Barby Perlberg
    • Jimmy Reed
    • Sheldon Rosengarten
    • Marcy Seidel
    • Stephanie Sheahan
    • Alta Simpson
    • Jim Simpson
    • Myra Sheddan
    • Melonie Sain Simpson
    • Angie Street
    • David Tester
    • Jenny Vergos
    • Ward Walthal
    • John West
    • Lauren Harkins Wiuff
  • Areas We Serve
    • Reasons to Love Memphis
    • Amenities
    • Arlington Realtors
    • Bartlett Realtors
    • Collierville Realtors
    • Cordova Realtors
    • Downtown Memphis Realtors
    • Eads Realtors
    • East Memphis Realtors
    • Germantown Realtors
    • Lakeland Realtors
    • Midtown Memphis Realtors
    • Piperton Realtors
  • Global Connections
  • Contact Us
  • Property Search
Carrie Anderson image
Carrie
Anderson

(901) 237-2735

anderson@m-brealtors.com

Cathleen Black image
Cathleen
Black

(901) 682-1868

cblack@m-brealtors.com

Melanie Blakeney image
Melanie
Blakeney

(901) 489-6974

mblakeney@m-brealtors.com

Jeff Blakeney image
Jeff
Blakeney

901-237-4542

jblakeney@m-brealtors.com

Ashley Bonds image
Ashley
Bonds

(901) 485-2179

abonds@m-brealtors.com

Melody Bourell image
Melody
Bourell

(901) 461-4016

mbourell@m-brealtors.com

Katie Cook image
Katie
Cook

(901) 628-3065

kcook@brealtors.com

Jon Dickens image
Jon
Dickens

(901) 496-5702

jdickens@m-brealtors.com

Kelly Erb image
Kelly
Erb

(901) 355-3830

kerb@m-brealtors.com

Robin Fauser image
Robin
Fauser

(901) 494-0355

rfauser@m-brealtors.com

Golda Frankland image
Golda
Frankland

(901) 229-3083

gfrankland@m-brealtors.com

Rip Haney image
Rip
Haney

(901) 351-2190

rhaney@m-brealtors.com

Lita Hurston-Reed image
Lita
Hurston-Reed

(901) 682-1868 Ext. 326

lhurston-reed@m-brealtors.com

Laurence Kenner image
Laurence
Kenner

(901) 351-4210

lkenner@m-brealtors.com

Maria Krahn image
Maria
Krahn

(901) 481-0253

mkrahn@m-brealtors.com

Elizabeth Kuhlo image
Elizabeth
Kuhlo

(901) 356-5452

ekuhlo@m-brealtors.com

Jake Lawhead image
Jake
Lawhead

(901) 682-1868

jlawhead@m-brealtors.com

Tracy Dougan Lombardo image
Tracy Dougan
Lombardo

(901) 581-3257

tlombardo@m-brealtors.com

Jerry Lucius image
Jerry
Lucius

(901) 355-3076

jlucius@m-brealtors.com

Diane Benson Malkin image
Diane Benson
Malkin

(901) 604-8245

dmalkin@m-brealtors.com

Hugh Mallory image
Hugh
Mallory

(901) 497-9756

hmallory@m-brealtors.com

Mindy Okeon Mattingly image
Mindy Okeon
Mattingly

(901) 246-1060

mokeon@m-brealtors.com

Thomas Murphree image
Thomas
Murphree

(901) 359-3847

tmurphree@m-brealtors.com

Jordan Nichols image
Jordan
Nichols

901-682-1868

jnichols@m-brealtors.com

Mike Parker image
Mike
Parker

(901) 277-7275

mparker@m-brealtors.com

Barby Perlberg image
Barby
Perlberg

(901) 619-8543

bperlberg@m-brealtors.com

Jimmy Reed image
Jimmy
Reed

(901) 682-1868 ext. 303

jreed@m-brealtors.com

Sheldon Rosengarten image
Sheldon
Rosengarten

(901) 682-1868

shelrose@memphisrelocate.com

Marcy Seidel image
Marcy
Seidel

(901) 422-1665

mseidel@m-brealtors.com

Stephanie Sheahan image
Stephanie
Sheahan

(901) 412-8600

ssheahan@m-brealtors.com

Myra  Sheddan image
Myra
Sheddan

901-870-0154

msheddan@m-brealtors.com

Melonie Sain Simpson image
Melonie Sain
Simpson

(901) 682-1868

msimpson@m-brealtors.com

Jim Simpson image
Jim
Simpson

901-484-0792

jsimpson@m-brealtors.com

Alta Simpson image
Alta
Simpson

901-484-6040

asimpson@m-brealtors.com

Angie Street image
Angie
Street

(901) 481-5560

astreet@m-brealtors.com

David Tester image
David
Tester

(901) 351-3439

dtester@m-brealtors.com

Jenny Vergos image
Jenny
Vergos

901-634-2271

jvergos@m-brealtors.com

Ward Walthal image
Ward
Walthal

(901) 634-6900

wwalthal@m-brealtors.com

John West image
John
West

(901) 682-1868 ext. 389

jwest@m-brealtors.com

Lauren Harkins Wiuff image
Lauren Harkins
Wiuff

(901) 859-3565

lharkinswiuff@m-brealtors.com

Friday, September 14, 2018

Getting Financially Ready to Purchase a Home

Wallet

So you’re ready to buy a home, and now you’re wondering how to get your finances in order for the big purchase. Hopefully you’re taking a good hard look at your finances and planning to purchase long before you begin your search process. Preparing your personal finances for such a major purchase may take weeks, or even months.

The good news is that whether you’re taking a look at your finances months or days before speaking with a realtor, there are several ways to manage your finances in anticipation of such a large purchase.

1. Complete a Financial Audit

The first step in the home buying process is not speaking to an agent, but completing a financial audit. Sit down and have a good hard look at your finances by understanding exactly how much money you have coming in and how much is going out on a monthly basis. If you have outstanding loans (such as automobile loans and student loans) identify the total amount, the monthly payments, and the length of time required to complete the payoff.  Do the same for credit card debt.

This is exactly what a lender will do once you’re ready to apply for a loan, and it’s far better to know before meeting with a lender whether or not you’re likely to be approved for a loan. Before you begin looking for a home, you will want to know the price range of home you can purchase and the approximate monthly costs. Otherwise, you may feel unduly restricted or you may be overly optimistic about your appropriate price range.

2. Care for Your Credit

Caring for your credit remains an important financial practice regardless of if you intend to purchase a home. However, the better your credit, the more options you have for a home loan.  A lender custom tailors a loan for you.

WHAT IS THE DIFFERENCE BETWEEN A CREDIT SCORE AND A CREDIT REPORT?

When applying for a home loan, your mortgage lender will be taking a look at your credit history and your credit score. While your credit history is a more detailed report on your overall purchase and payment history, your credit score tells lenders at a glance whether or not you are a reliable borrower and spender.

  • Excellent: 800+
  • Very Good: 740 - 799
  • Good: 670 - 739
  • Below Average: 580 - 669
  • Poor: 579 or Less

HOW CAN I RAISE MY CREDIT SCORE?

If your credit score is lower than 740, you will benefit by taking steps to improve  your credit report. There are several ways to raise your credit score in preparation for large purchases.

  • Don’t miss payments.
  • Don’t apply for new credit cards or loans.
  • Don’t make any large purchases, such as a new car, new furniture, etc.
  • Don’t leave any accounts open that could be sent to collections.
  • Don’t cancel or close any accounts or credit cards.
  • Request a higher credit limit. If you are approved for a higher credit limit, this will lower your utilization, which will in turn have a positive impact on your credit score.

3. Be Realistic

Now that you’ve taken a good hard look at your finances, it’s time to figure out how much you can afford to spend on a home.

HOW MUCH MORTGAGE CAN I AFFORD?

Most mortgage lenders use the 28-36 rule when determining how much of a home mortgage an individual or family can afford to pay. We generally recommend that your costs do not exceed 28 percent of your gross monthly income and that your other expenses, such as credit cards, car payments, and student loan payments, not exceed 36 percent of your gross monthly income.

Once you’ve determined how much home you can afford based on your gross monthly income and expenses, it may be in your best interest to remain conservative. Just because you can afford to buy a more expensive home doesn’t mean you should. Don’t ignore future significant costs such as the potential for vehicle repairs or college funding. If you anticipate buying an automobile or needing to pay for education, take that into account even if you have not already incurred those expenses.

4. Choose an Experienced Real Estate Agent

One of the wisest things you can do in the home buying process is to choose an agent with experience and contacts in the contacts in the local market. A good agent helps you find the best home in the appropriate price range. Realtors have unique skills and a variety of tools, including their experiences with previous transactions, which ultimately provide the assurance you will make the best purchase for you.

READ MORE: 4 Reasons Why Having a Real Estate Agent Works

As the oldest real estate firm in Memphis, Marx-Bensdorf, REALTORS has established a reputation as a leader in the Mid-South real estate market. Our realtors are dedicated, professional, and experienced, and their hard work has been recognized as such. That’s why our firm has been awarded the distinguished Memphis Most Award four times over. Are you ready to start the homebuying process? Contact one of our agents today!

SPEAK WITH AN AGENT

 

Posted by David Tester at 1:24 PM
Finances
  • « How Do I Know When to Accept an Offer on My House?
  • Celebrating 150 Years at Marx-Bensdorf - Looking Forward »

Marx-Bensdorf logo

5860 Ridgeway Center Parkway
Suite 100
Memphis, TN 38120

Phone: (901) 682-1868

WQC BBB Memphis GMC GACC EHO GHS GHS LeadingRE
DISCLAIMER: The information provided is for the consumer's personal, non-commercial use and may not be used for any purpose other than to identify prospective properties that the consumer may be interested in purchasing. Information deemed reliable, but is not guaranteed accurate. Some or all of the listings displayed may not belong to the firm whose web site is being visited.
Copyright © 2019 Memphis Area Association of REALTORS Sitemap Memphis Web Design by Speak