being MVP: Tips for Planning to Buy Your Dream Home #CapitalOneHome @CapitalOne

Tips for Planning to Buy Your Dream Home #CapitalOneHome @CapitalOne




We finally closed escrow on our rental condo this past week. It was a daunting process that was made even more difficult when escrow fell out and we had to scramble for another buyer. Now that that is behind us, it's time to think about listing our current home and looking for our dream home. My Pinterest board is filled with so many things that I would want but first, we need to figure out how we are going to be able to afford our dream home.


While we know to aim for putting 20 percent of the purchase price of the home as a down payment to avoid mortgage insurance, the amount can be a bit shocking as we are shopping in the Southern California market and specifically in my in-law's neighborhood where a tear down/fixer upper runs about $900,000+. I think the neighborhood having the top school district plays a role in the listing prices. So we have to decided whether we want to take on this huge task or save up enough to just buy the perfect move-in ready home. I want to be well informed and knowledgeable as well as financially smart so I'd like to share my tips with you.


Find out How Much Home You Can Afford

The rule of thumb is to look at homes that are 2.5 times your annual salary because you don't want to spend more than 28% of your gross monthly income on housing. I would actually stretch this into 3-3.5 times in our ideal neighborhood because there is nothing available otherwise. You can even use an online mortgage calculator to find out an estimate of what you can afford.


*I've been watching this home building process (above) for over a year now! 

Start Putting Away Money Towards Your Down Payment

This is essential. Save a little here and there for your dream home fund. You will be surprised at how much you can save by limiting certain luxuries as daily coffee/pastry runs, drinks while dining out, pretty shoes that you will wear once, toys that will be collecting dust after just one play, etc.

Maybe even make a visible "pot" where you stash all the $5 or $10 bills you happen to have in your wallet.


Make Sure Your Financial History is Strong

There are so many variables into buying a home and getting a loan (unless you plan on buying all cash!) such as income, assets, job history, credit score, total debt and how much you’re willing to put down as a down payment.

Order copies of your credit report and go through it carefully to take care of negative items that may affect your home purchase.

Get Pre-Approved for a Loan

This goes hand in hand with how much home you can afford. When you get pre-approved, you will know what homes you can shop for (and make payments on) without getting frustrated after finding the perfect home that you eventually cannot buy. Capital One's new online resource is packed full of information regarding loans available to you, terms you should know, documents you need to apply for a mortgage and much more.

Don't Rush the Process

Unless you are in some sort of dire situation where you must purchase a home asap, there is no need to rush the process. Take your time and gather all the necessary information for making most likely the largest purchase of your life.


Learn more about Capital One Home Loans and how they can help you get into your dream home by visiting https://www.capitalone.com/home-loans/direct/learning-center or calling 855-900-8886.

We've already been receiving comps for our current home from our realtor (along with a nifty knife for closing on our rental) so I've been stalking the neighborhood For Sale signs!

Are you in the market for a new home? Or are you saving up for your dream home purchase? 


I was selected for this opportunity as a member of Clever Girls and the content and opinions expressed here are all my own.

14 comments:

  1. I bought my home 13 years ago and it was definitely not an easy process. It seems like things are a bit more streamlined these days.

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  2. these are all good tips. I hope you find your dream home - wow - houses in S Cal are very expensive, I thought it was expensive where I am!

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  3. These are all really good tips. I agree with taking your time and not rushing into anything!

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  4. These are great tips! We are looking to buy in about 2 years so we are starting to do these things now.

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  5. I really like your don't rush the process tip. We're looking to buy a new home now and I'm really waiting to find just what I want.

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  6. Timing just worked out for us when we bought our dream home. Finding it at the right time in the right place was almost too easy. I do agree that you don't want to hurry through things. It's such a huge purchase, you've got to make sure it's the right one.

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  7. I was pretty nervous the first time we were buying a home. I'll probably nervous if I do it again but these tips help!

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  8. We bought our first home almost 10 years ago. It seemed fairly straightforward back then, but thinking about selling THEN buying now makes me more than a little anxious. I definitely need tips like yours. Thanks!

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  9. These are very good tips. We bought our retirement home in 2011, and all of the things you mention were what we did. Except for the down payment, because my husband is a Veteran, we have a VA loan with no down payment.

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  10. Great tips! Buying a home can be such a daunting thing to accomplish... especially where the housing market is so bad. Seems like more homes are being bought and sold in area right now. That gives me greater hope.

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  11. Thanks for the tips on saving for your dream home. I agree that if you just start saving a bit here and there, it adds up quickly for a 20% down-payment. We just bought our dream home 2 years ago and were financially smart about it. It's totally worth it!

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  12. These are great tips! I'm still renting, but my buying days are getting closer.

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  13. I think staying in a budget and recognizing what you really can afford is so important. SO many people get themselves into trouble thinking they can afford something which is really outside of their means. Great advice

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  14. I'll have to share this with a friend of mine thinking of buying a new home. Great tips.

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