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Get Your Financial House in Order Before House Hunting


With housing prices approaching pre-recession levels, and mortgage rates still hovering near historic lows, this may be the best time to strike your best deal for a new home. Sellers are anxious to sell, but buyers are still hiding in the shadows, so, in many parts of the country, it’s a buyer’s market. Lenders aren’t quite so anxious to lend as they once were, so, it you’re in the market for a new home, your best move is to get pre-approved right now.

Getting your financial house in order is the first critical step. Assuming you have your down payment ready to go, it’s time to shore up your finances and work on your credit. Here are the two most essential action steps to take right now:

Put your family on a budget. If you’ve been saving for a down payment, you will also need to save for additional needs such as an emergency fund to cover housing maintenance and repairs. If you’re buying a home for the first time you need to plan for additional expenses. Prioritize your spending now as if you are already incurring the extra expenses involved in owning a home.

Pay down your debt. To maximize your credit score you will need to get your debt ratio below 30%. You won’t qualify if your total debt/income ration, including mortgage, exceeds 38%. Fix your budget now to include extra debt payments. Do not incur any new debt – budget so you are on a 100% cash basis.

Personal – Saving, Planning & Budgeting

Ready to explore how Sunflower Bank can assist you? Speak to a personal banker at a branch near you, contact a specialist on our Wealth Management team, or find the right financial partner on our Commercial Banking team for your business needs. 

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This article contains general information only. Sunflower Bank is not, by means of this article, rendering accounting, financial, investment, legal, tax, or other professional advice or services. This article is not a substitute for such professional advice or services, before making any decisions related to these matters, you should consult a qualified professional advisor.