For first time home buyers, making a home purchase can be stressful as you familiarize yourself with new terms, talk to banks, and look at tens to hundreds of houses for the perfect place to call home.
To make the most of the buying experience, it helps to know the necessary details right from the start. These tips will help you navigate the process, save money, and close the deal.
Check Your Finances
If you can, start saving early for your home purchase. First time home buyers should plan for a down payment, closing costs, and moving expenses. Then, before you start shopping, meet with your lender to decide how much you can safely spend on a house. Your shopping price range will consider your income, debt, down payment, and credit score.
You can request a free credit report from each of the three credit bureaus (Experian, Equifax, and Transunion). Your score will determine if you qualify for a mortgage and can affect the interest rate. Be aware that you can dispute any errors you find on your report that lower your number. Typically, a credit score between 580 and 620 or higher is best for home loans, although lenders will have their criteria.
After you know your credit score, ask your lender about the types of mortgages you qualify for. From conventional and FHA loans to VA and USDA loans, you may have several options. Also, many first time home buyers have access to federally backed loans that can include a low or no down payment, and more.
Finally, after you know how much you can spend on a new home, get a pre-approval letter to show that you are a serious buyer.
Find the Right Type of House
What type of house do you want? From a fixer-upper to a single-family home to a condo or townhouse, the options may seem endless. Think about what you want right now as well as what you may want in the future. If you plan to grow your family, it may make sense to find a home with extra space.
Check out neighborhoods and choose one that has the amenities you are essential to you. Also, test out the commute to your work during the time of day when you will be driving. Is there gridlock, and if so, can you live with that?
By taking your time to do this kind of due diligence can help prevent buyer’s remorse after you’ve signed on the dotted line and moved in.
Find the Right Real Estate Agent
Working with a real estate agent can help take the pressure off doing (and knowing) it all yourself. For first time buyers, the right agent will search the market for houses that meet your criteria and guide you through the home buying process.
When choosing an agent, ask them about their experience, their approach, and for references.
The Sarah Bernard Real Estate Team Helps First Time Home Buyers
Helping first time home buyers is one of our specialties. We have the expertise to help you find the home of your dreams and work with you to make experience fun and pain-free. Contact us now for a complimentary consultation! Call 317-780-9070 today.