{"id":369077,"date":"2016-04-04T10:47:12","date_gmt":"2016-04-04T15:47:12","guid":{"rendered":"https:\/\/ability-fl-prod.internetbrands.com\/ability-law\/realestate\/buying-a-home\/homebuyer-s-financial-worksheet.html"},"modified":"2023-11-13T18:16:18","modified_gmt":"2023-11-13T23:16:18","slug":"homebuyer-s-financial-worksheet","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/realestate\/buying-a-home\/homebuyer-s-financial-worksheet.html","title":{"rendered":"Homebuyer’s Financial Worksheet"},"content":{"rendered":"\n
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Homebuyer's Financial Worksheet<\/h1>\n
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\n By Melissa McCall, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n

The homebuying process requires a significant financial investment. This worksheet can help you understand how much you should save for a down payment and closing costs.<\/p>\r\n

While this worksheet gives you an idea of what you can afford, a mortgage lender can provide a more precise estimate. This worksheet is not a substitute for professional advice.<\/p>\r\n

Understanding the Homebuying Process<\/h2>\r\n

While saving for a new home is essential, it is equally important to understand why you are saving. There are many factors to consider as you save for this home. Budgeting for some of these items is important, as they are part of your upfront costs.<\/p>\r\n

Credit Score<\/h3>\r\n

If you need a home loan, get a copy of your credit score ahead of time so that you know what to expect. Your credit score can impact your ability to get a mortgage loan. The lender could either deny your application or assign a higher interest rate. You can get a free copy of your credit report yearly from the three major credit reporting agencies: Equifax, TransUnion, and Experian.<\/p>\r\n

Credit Report<\/h3>\r\n

Carefully review your credit report. If it contains any errors, contact the credit agency immediately to begin the dispute process. If your credit is less than stellar, and you have the time, take care of any adverse entries. Improving your credit can make a big difference when it comes to financing a home.<\/p>\r\n

Upfront Costs<\/h3>\r\n

The price of the home is only one part of your total upfront costs. Many people get a mortgage loan<\/a> to finance home purchases. Before looking at homes, you may need preapproval from a mortgage lender.<\/p>\r\n

Many real estate agents need a preapproval letter before they show you homes for sale. The letter shows you are serious about buying a home. It also indicates that you have enough money to follow through with a purchase. The loan amount will dictate the price range of homes the Realtor<\/a> or real estate agent will show you.<\/p>\r\n

Lenders may look at the following factors before they approve or deny your loan application:<\/p>\r\n