Buying a house is a significant life decision.
If you’ve never done it before, the task can seem daunting but have no fear, these 5 tips will get you on the right track for new homeowners.
It’s common for loans to require a 20% down payment, but there are some first-time homebuyer programs that require as little as 3% down. Go to a lender and start working out what you can afford, and what you will need for a down payment before you start seriously looking at purchasing a home. Having all this in place will help you in the long run.
When you sit down with a lender be realistic and honest about your current monthly bills and expenses. The amount of money lent to you will depend on your income and expenses. You don’t want to be locked into a house that you spend all of your extra money to afford. If life happens, it could put you in a pinch.
There is no harm in going to a couple of lenders to see what rates they can offer you on a mortgage. Yes, they can differ, so look around and explore your options.
If the housing market in your area is moving quickly, you need to be pre-approved. This just means that a lender has already put in writing how much you can spend and are approved for. By going through this process early, you will be a more attractive bid if you get into a situation where there is more than one party trying to get a house.
Pause Credit Activity
If you’re looking to purchase a house, don’t make any big purchases around that time. It will affect your credit score and could decrease the amount of loan. If possible, wait until after all of your paperwork goes through, and the house is yours.
If you have any questions about the home purchasing process, contact us! We are experts at guiding you through the process to make it as simple as possible for you new homeowners.