Purchasing your first house is a thrilling yet daunting commitment – it’s an investment of both money and dreams. Although you may be tempted to jump into the home-buying process right away, there are simple steps that can help secure you the best deal possible and ensure that this decision yields positive rewards over time. Before deciding on any property, consider taking these key steps toward making sure your dream home becomes a reality!
#1: Get A Copy Of Your Credit Report And Check Your Credit Score
Are you a first-time home buyer? Don’t miss out on the wonderful opportunity of an FHA loan. This type of loan has enabled many hopeful homeowners to make their dreams come true, and with a required minimum credit score of 500, your chances are even higher! There are plenty of free services that allow you to easily view your FICO scores which lenders use for approval, make sure you check yours to know where you stand. It’s possible that you could get a lower rate if your score is above 500.
#2: Ensure All Information On Your Credit Report Is Accurate
Your credit report can greatly influence your ability to acquire a loan. Every individual is entitled to receive a copy of each of their three credit reports at no cost from AnnualCreditReport.com, an online platform managed by TransUnion, Equifax, and Experian. It’s important to take the time to examine outdated accounts as well as any inaccurate data or judgments/collections activity that may prevent first-time home buyers from meeting the qualifications needed for purchasing a house.
#3: Before Shopping Before You Start House Hunting, Get Pre-Approved Through Your Mortgage Broker
Prior to searching for homes, talk with a mortgage broker and obtain pre-approval on your loan. This will help you determine what size loan you are eligible for and how much it will cost monthly. Doing this now, before starting to look at properties, gives you an advantage in finding exactly what type of house fits within both your budget and expectations.=
#4: Talk To Your Mortgage Broker About All Of Your Loan Options
When choosing a loan type, be sure to ask questions about all of the homes available and see if you qualify for special offerings like VA loans (for veterans). First-time home buyers may find FHA loans more accessible than conventional ones, but be sure to gauge your credit score first. Make sure you have a discussion with your mortgage broker about different loan terms such as 15 or 30-year periods for both fixed and adjustable rates.
#5: Review Your Finances, Create A Budget, And Stick With It
A fundamental component of financial planning is understanding your monthly expenses. Now that you know what to expect, create a budget for yourself – bear in mind that utility costs may be higher when owning property compared with renting.
#6: Save, Save, Save For Your Down Payment
As a first-time homebuyer, you can significantly reduce the cost of your new abode by providing a down payment that is higher than what’s necessary. For instance, FHA loans usually require at least 3.5% in your down payment yet placing 5% or more will lessen its expense over time. Start accumulating funds for your forthcoming advance right away while browsing houses on sale now! The U.S Department of Housing and Urban Development also have resources that may help such as grants and down payment assistance.
#7: Begin Your Search For The Perfect Home
Congratulations! Now that you’ve got the finance sorted and a mortgage broker by your side, it’s time to seek out the ideal home for yourself and your family. As a first-time buyer, you should consider working with an experienced real estate agent who can help guide you through this process. A real estate agent will provide insight, bargaining power, and professional guidance that will be invaluable.
#8: Get An Experienced Real Estate Agent And Make An Offer
With the assistance of a knowledgeable local real estate agent, you can easily find your ideal home and negotiate an offer. It’s imperative to be mindful of both the housing market in that area as well as any details regarding the property itself. Your chosen professional will provide a detailed market analysis to assist in developing an attractive offer that is also comfortable within your budget.
#9: Always Conduct A Complete Home Inspection
Before you commit to buying a new home, it is essential that you know all of the details – from pesky pests to structural issues. This can be achieved through a professional home inspection, which is usually expected as part of any offered contract. After your offer has been accepted, an inspection will take place in order for potential problems or repairs to be identified and addressed before closing. A complete home inspection also allows future homeowners to gain insight into what updates may need to be made with major appliances like heating and cooling systems or roofing material over time.
#10: You’ve Made It This Far, Don’t Make Any Major Financial Changes
During the wait for your home to close, be sure to remain consistent in your financial situation. Don’t switch jobs and don’t open new lines of credit – even if it’s just for furniture! First-time homeowners should always keep their mortgage broker updated on any changes that could potentially affect their loan qualification. This will help avoid a possible delay in closing.
Get The Mortgage That’s Right For You
If you’re looking for the best reverse mortgage lender in town, be sure to do your homework first. At Sword Mortgage, we believe that an informed customer is the best kind of customer. Therefore, our loan officers will take the time to fully explain your options and help you understand all aspects of your unique situation before making a decision. Call 770-826-0222 to speak to a mortgage professional or get started on your loan application process today.
