Helpful Tips for First Time Buyers
Becoming a first time homebuyer has many benefits. Not only is there the pride you will feel in becoming a first time homebuyer, but there’s also the financial security you will earn through the equity you build in your new home. But before you go looking at homes you should consider these tips that every first time homebuyer needs to know and understand:
Get current on your credit
The first, and possibly easiest, thing to do when becoming a first time homebuyer is to take a look at your credit history. If things look good, and your credit score is ship/shape then you should be good to go. If your credit is questionable, now is the time to start repairing any unfavorable items on your credit report. Luckily, there are a lot of things you can do to repair your credit before buying a house.
Manage your debt Most first time homebuyers have some sort of debt from student loans or credit cards. Having debt doesn’t mean you won’t quality for a home mortgage loan it effects how much you can borrower. Consult with your Loan Officer before you pay off any debt or collections as this can negatively effect your score (yes, you read that correct). Also, remember that taking on debt in the middle of a mortgage process can throw a wrench into things, so hold off on your spending if you can.
Start saving While it may be very early on in the home buying process, it’s actually never too soon to start saving for that inevitable down payment. There are a number of different mortgage options that you may qualify for, so hold onto your money until you have been advised. There are many ways and options to buy a home with little down. Cash ($avings) is KING and it keeps your options open for fixer uppers, paying down debt or using it for a down payment. Seek advice from your Loan Officer first as they now where your power is and how to put strengths to work.
Find a Realtor Because the home buying process can be a tad bit overwhelming, it’s a good idea to surround oneself with a hard working, reputable and easy-to-work-with professionals. You’ll likely be looking at many houses with the Realtor you select, so be sure you can maintain a good working relationship. Also, it’s never a bad idea to have a Realtor and mortgage broker who can work together. It’s no secret that buying a home can be challenging however having true professionals on your side can truly make it a pleasant experience. Hopefully these tips will help you ease into the process of the AMERICAN DREAM :)