If you’re thinking about buying a home in Jasper – whether you’re currently renting or you want to sell your existing home – there are five things you should do first. This guide explains each of them.

5 Things You MUST Do Before You Buy a Home in Jasper

Check out the five things you should always do before you start house-hunting:

Save for a down payment
Check your credit report
Get mortgage preapproval
Figure out how much money you can realistically spend on mortgage payments
Talk to a real estate agent specializing in the area

Here’s a closer look at each.

Task #1: Save for a Down Payment

Though you don’t necessarily have to save up 20 percent of the value of a home you want to buy (that used to be the gold standard for taking out a mortgage), you probably do need to save up several thousand dollars before you start house-hunting. The higher your down payment is, the less you’ll have to borrow from a lender; that means your monthly mortgage payments will be lower. You may also get lower interest rates and better terms if you have a higher down payment when it’s time to buy.

What About PMI?

It’s also worth noting that on most mortgage loans, if you put down less than 20 percent of the home’s purchase price, you’ll be required to pay for private mortgage insurance (PMI). This insurance protects your lender, not you. It’s there in case you default on your loan; if that happens, the lender will get at least some of their money back from the insurance company.

How Much Should You Save for a Down Payment?

There’s no set answer to this question – it depends on how much money you have available and what kind of monthly mortgage payments you’re comfortable making. A good rule of thumb is to try to save up enough for a down payment that’s equal to at least 10 percent of the value of the home you want to buy. So if you’re hoping to buy a Jasper home that’s valued at $250,000, you’ll need a down payment of at least $25,000.

Task #2: Check Your Credit Report

Your credit score is one of the most important factors that lenders will consider when you’re applying for a mortgage. A good credit score indicates to lenders that you’re a responsible borrower who is likely to make your payments on time.

Thanks to the Federal Trade Commission (FTC), you can get free copies of your credit report from each of the three major credit bureaus – Equifax, Experian, and TransUnion – once per year. (You can get yours at AnnualCreditReport.com. It’s a good idea to review your credit report before you start house-hunting so you can identify any errors or inaccuracies that may be affecting your score.

If you find any errors, dispute them with the credit bureau in question; once they’ve been corrected, your score should go up.

Task #3: Get Mortgage Pre-Approval

Mortgage pre-approval is different from mortgage pre-qualification. When you’re pre-qualified for a mortgage loan, that means a lender has looked at your financial information – including your debt, income, and assets – and estimated how much money you’re eligible to borrow.

When you’re pre-approved for a mortgage loan, that means a lender has checked your credit report, verified your financial information, and determined how much money they’re willing to lend you. Being pre-approved for a mortgage loan gives you a clear idea of how much money you have to work with when you start house-hunting.

It’s important to note that being pre-approved for a mortgage doesn’t mean you’re actually approved for the loan. The approval process will also include an inspection of the property you want to buy and an appraisal to make sure it’s worth at least as much as the amount you’re borrowing.

Task #4: Figure Out How Much Money You Can Realistically Spend on Mortgage Payments

Just because you’re pre-approved for a certain amount doesn’t mean you should borrow the full amount. It’s important to have a realistic idea of how much money you can comfortably spend on mortgage payments each month.

To get an idea of what kind of monthly mortgage payment you can realistically afford, start by looking at your budget. Make sure you take into account all of your other debts and expenses – including credit cards, car loans, student loans, and any other monthly payments you might have – as well as your income. Then, use a mortgage calculator to see what kind of monthly payment would fit comfortably into your budget.

Task #5: Talk to a Real Estate Agent Specializing in the Area

If you’re not already working with a real estate agent, now is the time to find one. A good real estate agent will be familiar with the Jasper housing market and can help you find a home that fits your needs and budget.

When you’re looking for a real estate agent, it’s important to find someone who specializes in the area where you’re hoping to buy a home. An agent who knows the Jasper market will be able to give you insights into things like average prices, recent trends, and popular neighborhoods.

$949,000

3 Bedrooms
3 Bathrooms
3,878 Sq Ft
4.060 Acres

401 E 36th Street Jasper, Indiana

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Listing courtesy of Ryan Craig from RE/MAX Local.

$724,900

3 Bedrooms
2 Bathrooms
2,940 Sq Ft
14.820 Acres

1089 N 400W Jasper, Indiana

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Listing courtesy of Zach Holt from Whitetail Properties Real Estate.

$575,000

3 Bedrooms
3 Bathrooms
1,776 Sq Ft
6.260 Acres

1928 South A Street Jasper, Indiana

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Listing courtesy of Arlet Jackle from RE/MAX Local.

$389,900

3 Bedrooms
2 Bathrooms
1,793 Sq Ft
0.414 Acres

4617 W Cypress Drive Jasper, Indiana

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Listing courtesy of Marissa Goodness from Carpenter Realty LLC.

$369,500

5 Bedrooms
3 Bathrooms
4,014 Sq Ft
1.300 Acres

1091 W 36th Street Jasper, Indiana

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Listing courtesy of Steve Wigand from ERA FIRST ADVANTAGE REALTY, INC.

$360,000

4 Bedrooms
2 Bathrooms
3,490 Sq Ft
0.371 Acres

307 Newton Street Jasper, Indiana

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Listing courtesy of Tama Stemle from RE/MAX Local.

$319,900

3 Bedrooms
3 Bathrooms
2,734 Sq Ft
0.580 Acres

980 S Crestwood Dr. Jasper, Indiana

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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

$309,900

3 Bedrooms
4 Bathrooms
1,568 Sq Ft
1.100 Acres

4667 W Ireland Church Avenue Jasper, Indiana

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Listing courtesy of Marissa Goodness from Carpenter Realty LLC.

$299,900

3 Bedrooms
3 Bathrooms
1,832 Sq Ft
6 Acres

912 E 420 N Highway Jasper, Indiana

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Listing courtesy of Jennifer Stallings from KELLER WILLIAMS CAPITAL REALTY.

$275,000

3 Bedrooms
1 Bathrooms
1,377 Sq Ft
0.720 Acres

3584 Bittersweet Dr. Jasper, Indiana

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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

$275,000

4 Bedrooms
3 Bathrooms
1,972 Sq Ft
0.590 Acres

1477 Worrell Drive Jasper, Indiana

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Listing courtesy of Constance Nord from RE/MAX REVOLUTION.

$250,000

4 Bedrooms
3 Bathrooms
2,103 Sq Ft
1.081 Acres

589 N Truman Road Jasper, Indiana

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Listing courtesy of Cheryl Arnold from CENTURY 21 ARNOLD & ASSOCIATES.

$219,000

4 Bedrooms
2 Bathrooms
1,250 Sq Ft
1.900 Acres

1281 E 2nd Avenue Jasper, Indiana

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Listing courtesy of Keasha Fromme from Carpenter Realty LLC.

$211,500

3 Bedrooms
2 Bathrooms
1,800 Sq Ft
0.208 Acres

891 Giesler Road Jasper, Indiana

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Listing courtesy of Kevin Bayer from RE/MAX Local.

$169,750

3 Bedrooms
2 Bathrooms
1,560 Sq Ft
1 Acres

5362 W Division Rd. Jasper, Indiana

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Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

Are You Thinking of Buying a Home in Dubois County?

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