Buying a home? New to the housing market? You probably have a lot of questions. As a first-time homebuyer it’s imperative that you do a substantial amount of research prior to tackling the market. Here are some steps you should be taking as a first-time buyer;
Know Your Credit Score
First and foremost, you need to know your credit score. Your credit score plays a considerable part when it comes to the terms of your loan. The better your credit score, the lower your interest will be. Should your score be considerably low, you run the risk of not even qualifying for a loan, in which case you’ll have to hold off on buying property until you can build up your score.
Prior to researching any markets, you’ll want to know what you’re pre-approved for. Pre-approvals not only verify that you’ll be able to get a loan, but will clarify how much you actually have to spend. During this pre-approval process, it’s important to keep your options open. Be conscience of the lender’s APR. Compare mortgages between lenders before choosing, so that you can get the best deal available.
Come To Terms With Your Expenses
One of the fundamental reasons first-time home buyers find themselves in less than desirable financial situations is due to their lack of budgeting. Buying a home is, in the grand scheme of things, the biggest investment in most people’s lives thus, proper budgeting is quite necessary. There are a lot of expenses that go into buying a home other than the cost of the house itself. Take the time to sit down and go through these expenses in comparison with your monthly income. Consider not only your mortgage but also property taxes, interest, and insurance.
Decide What’s Most Important
As a first-time homebuyer, unless you’re on the more fortunate side of the spectrum, you likely won’t be able to afford the home of your dreams. Take some time to decide what’s most important to you in a home. Is it the neighborhood, proximity to work, or overall condition of the home? Figure out where you’re willing to compromise prior to shopping for a home so that the process is most effective.
There is so much to be said when it comes to first-time homebuyers. The most significant piece of advice one can take is to take it slow, don’t rush into anything! I’ll be sharing more tips in my next blog post, so be sure to check back!