5 Tips for First Time Home Buyers
There are many important decisions people are faced to make throughout their lifetimes. That being said, it may be argued no decision is bigger than deciding to buy a home. Navigating through the ins and outs of the real estate transaction process at times can be confusing. This can be especially true in regard to first time home buyers. First time buyers may feel intimidated by the process at first. However, there are numerous tips and tricks that can help you through this process.
1.) Know Your Credit Score
Firstly, you will want to take time to determine what your credit score looks like. In general, this is a good idea to practice in your day-to-day life as your credit score determines your eligibility for personal loans, housing, and utilities. However, this point is especially true in relation to first time home buyers. You will want to go over your credit report to identify late payments, as theses can be held against you and poorly effect your credit. There are many tool and sites out there to help assist first time home buyers in determining their credit scores. For example, Bankrate.com and Experian have free tools for anyone to use. Finally, understanding your credit score will have you better prepared for the next tip.
2.) Identify Your Budget
Secondly, you’ll want to take some time to figure out what you can and cannot afford. To clarify, you will want to determine a budget that is realistic for you. Above all, being realistic in relation to your budget is a must for all home buyers. Failure to do so will likely have you wasting time and effort. Also, do not rely on your mortgage broker to tell you what your budget is. Their job is to help you get a loan, not to get a loan that’s within your budget.
3.) Determine Your Needs & Wants
This step in the real estate process requires time. Do you want a historic home with all of its charm and maintenance? Perhaps, you would you prefer to have a newer home? Or maybe you want good schools, or need access to a bustling downtown? It is wise to get an idea of what you want from your home sooner rather than later. Again, your wants and needs should stay within the bounds of your affordable budget.
4.) Compare Multiple Lenders
Furthermore, by this point you should have your ideal budget nailed down. That being said, it is now time for you to shop for a mortgage. You will be surprised at the range of fees charged from one lender to the next. Be aware of the different types of mortgages that exist. In addition, there are also different types of lenders, be sure to choose the one that works best for you. Most importantly, take time to fully understand your mortgage type.
5.) Down Payment Assistance
Lastly, new, or first-time home buyers should look into down payment assistance. There are various programs that exist to help assist you getting into your home. Many are state-sponsored and can help with closing costs and even in renovations. Make sure to check income requirements as many of these awards are need-based.
