By planning in advance and following some simple financial tips, families will find the journey to homeownership much easier and very achievable.
Maryville, TN (PRWEB) June 12, 2014
With the housing market on the rise again, people are taking advantage of the opportunity to purchase homes. However, prospective homebuyers have a lot of factors to consider first. Clayton Homes, the nation’s largest home builder*, understands this and is providing budgeting and buying tips to consumers in order to ensure the decision to buy is the best next step.
“Buying a new home does not have to be a difficult or stressful process,” said Kevin Clayton, CEO of Clayton Homes. “By planning in advance and following some simple financial tips, families will find the journey to homeownership much easier and very achievable.”
Some factors to take into account before entering the purchasing and financing stage of home buying include:
- Budget— A good way to prepare for increased monthly housing expenses is to calculate what the increased amount will be and begin saving that same amount each month to prepare for the transition. Doing this and also calculating your current debt-to-income ratio will allow one’s lifestyle to transition in a way that can accommodate a new payment. Tools like a free online affordability calculator can help with this by predicting the amount of the new monthly payment.
- Credit Score— A homebuyer’s credit score is one factor that will determine the type of loan and the interest rate that they may qualify for. Pulling a credit report can help make sure there are no errors that might affect financing. If there are errors on the credit report, homebuyers can work on having them corrected prior to applying with a lender for a loan.
- Debt— It is important to reduce delinquency appearing on a credit report. Of course, it helps to have a report without any history of late payments, but the most important thing is to not have delinquent balances prior to getting pre-qualified.
- Prequalification – Check with a financing company about prequalification options. Prequalification can often be done online and at home. Having an estimate from a lender about the available financing amount is a good way for the homebuyer to stay within their budget, even before home touring and browsing at the Home Center.
View the fun and helpful “Homebuyer’s Financially Fit Road Map” infographic.
About Clayton Homes
Clayton Homes has built more than 1.5 million homes since 1956, winning multiple awards for design and construction. Through its affiliates and family of brands, Clayton Homes builds, sells, finances, leases, and insures manufactured and modular homes, as well commercial and educational buildings. As the nation’s largest home builder*, Clayton Homes is a vertically integrated Berkshire Hathaway company whose purpose is opening doors to a better life, one home at a time.
*Largest homebuilder in 2012 as of 7/26/2013, based on a comparison of the number of manufactured homes sold to the number of site-built homes sold as reported by builderonline.com and the number of manufactured homes shipped as compared to all other manufactured home manufacturers as reported by the Manufactured Housing Institute.