Buying a house is a momentous occasion. It’s also an achievement a lot of people don’t get to experience.
Good on you!
You deserve a space to call home and create sweet memories with your loved ones.
When buying a home for the first time, the process will be new to you.
Even if you don’t believe you need to, there are a few things to keep in mind to ensure a seamless transaction.
What are these important things? Consider these 5 factors.
Making a Down Payment
This is one of the greatest obstacles potential homebuyers encounter. This is especially true for millennials who are already swimming in debt.
Don’t wait until it’s too late.
Start saving early.
The down payment you’ll need to settle will be dependent on the mortgage and the lender you choose to do business with.
A 3% down payment is considered acceptable on several conventional loans. This down payment percentage may not appear to be much, but if you’re buying a $200,000 property, that’s a whopping $6000 installment.
To avoid this headache, start getting your financial house in order.
Check Your Credit Score
You want to ensure you have a good credit score when buying a home. This is a huge determining factor in whether you secure a loan, and the interest rate levied by the lender.
Consider settling your bills on time and lowering your credit card balances to the lowest amount possible to improve your credit score. The next stage is to keep track of your credit rating. That’s the only way you’ll understand how you’re performing.
Suit Up with A Real Estate Agent
Don’t be duped into thinking you can do this all on your own. Real estate agents exist for a reason, and that’s to sweeten the process of buying your first home.
They’ll work with you to find the home of your dreams, negotiate on your behalf, and handle difficult paperwork.
An experienced real estate agent will also take you through the process and get you equipped with what you need.
If you’re not yet paired with an agent, reach out to me and let’s get you that dream home.
Know Your Mortgage Options
You will have a variety of mortgage options to choose from, although your credit score and other factors will determine which is appropriate for you.
USDA loans, conventional mortgages, FHA loans, and VA loans are all types of mortgages that borrowers may qualify for. Each loan will have terms, including interest rates and the number of years you must repay it.
Sticking to Your Guns
From the outset, you would have likely decided on how much money you’d like to spend on a home. Don’t be forced or persuaded to spend more than you can comfortably afford, even if the lender is ready to offer more.
By sticking to your budget, you avoid future financial stress. A good option is to search for homes below your budget so that you have a little room to up things and still hit your target.
Once you bear these 5 factors in mind, you’re way ahead of other first-time homebuyers. Remember, no process is perfect, but you can mitigate some problems by planning.