At Progressive Urban Real Estate, we feel it is important when buying a home that several measures are taken before beginning the search. As the next step in our 5 Steps to Home Ownership, we put together a list of items to consider when preparing your finances for purchasing a home. 

• How much can you afford each month? This number includes - your monthly mortgage payment, taxes, home insurance, utilities etc. - to name a few. Progressive Urban's expert agents also recommend taking a look at all potential expenses to get a really good idea of the monthly amount you are able to afford.
• How much money are you willing or able to use for a down payment? Depending on the loan buyers need to have 3½% to 20% of the home purchase price for the down payment. There are also closing costs associated with buying a home that can be up to 6% of the purchase price.  Ask your Progressive Urban agent about special loan programs that have a 0% down payment or that give you money towards your closing costs.  
• Have you recently made any big changes financially? Any changes, like switching jobs or taking out a car loan, can negatively affect you when looking for a home loan.  
• How is your credit? Knowing your credit is an important step in the home buying process. Better credit can lead to better rates and better terms for your loan. If your score is lower you still may be able to qualify for an FHA, federally insured loan, but if your credit is bad you will need to improve it before you are ready to buy a home!  
• Are you buying a fixer upper? This type of home is likely to require additional funds for immediate repairs that goes beyond the initial down payment, closing costs, and monthly mortgage payments. A lender will want to see that you are able to complete the repairs and will most likely require a purchase/rehab loan in which the purchase and repairs are combined into the loan.

Ask your Progressive Urban agent if there are any special incentives in the area you are considering.  These incentives might include the following:

• Tax abatement
• Not sure what tax abatement is? With tax abatement improvements to a property will not be taxed for a certain number of years.
• Reduced rate financing
• Help for closing costs
• Reduced down payment requirements

Most importantly when organizing your finances before beginning your home search? Consult your Progressive Urban Real Estate agent! Our agents are experts in their field and extremely knowledgeable about the home buying process.  The end goal is to help you find the best home fit for your needs at a price that fits your lifestyle.