Buying a home is an exciting process, but it also requires a lot of prep work. The upside is that you’ll know exactly what to expect when you plan each step ahead of time. Here’s what you can anticipate from your home buying experience, from getting your finances in order to purchasing home insurance — and, of course, closing on your home.

3 Useful Tips for Buying a Home

1. Get Your Finances in Order

Start by figuring out how much you can afford. This is based on your debt-to-income (DTI) ratio, and it’s one of the factors lenders will consider when you apply for a loan.

Add up anything you need to pay every month, like credit card bills and student loan payments, and divide that number by your gross monthly income.

This number will help you determine how much you can devote to saving for a down payment, which should be about 20% of the cost of your home if you want to avoid paying private mortgage insurance (PMI).

2. Look at Homes

One of the most exciting parts of the process is looking at homes. You can do this on your own, but it’s helpful to work with an agent who is experienced with your area.

They can understand your needs and recommend homes that work with your lifestyle and budget. Real estate agents can even recommend lenders and mortgage programs to help you make a compelling purchase offer.

3. Search for Services

If your purchase offer is accepted, your timeline will quickly pick up speed. Get ready by shopping for the essentials, like getting quotes for internet services, movers, and home insurance. Remember, when you’re looking at home insurance policies, you want to get enough coverage to replace your home.

To get the most accurate policy, work with your home inspector to get details like the materials used for your home’s roof and exterior walls — your insurance provider will use this information to develop an accurate policy.

Protect your home with home insurance from Advantage Insurance Agency in Lincoln, NE. No matter your budget, you’ll receive personalized service to help protect your most valuable asset — your home. To get started, call (402) 484-5454 to schedule an appointment with an agent, or visit them online to learn more about their work.