Purchasing a home is not a decision to be made lightly. In fact, it will likely be the biggest monetary decision you’ll ever make in your life. But with friends, family, neighbors, and every other homebuying expert all offering conflicting advice, how can you know which tips to trust?
In this article, we will outline some of the best tips for the first-time homebuyer, but if you feel like you need more personalized help for your homebuying experience, call an experienced mortgage professional today for a consultation. The mortgage professionals at Rex Homes have also provided their list of tips on their website here: https://blog.rexhomes.com/9-tips-for-the-first-time-home-buyer/
Make a Large Down Payment
Most experts recommend having a down payment of at least 20% ready to go in your bank account. Lenders like to see this as part of a mortgage application and this will help set you apart from other potential borrowers who may not have saved as effectively.
Balance Your Wants and Needs
While you may want a beautiful, 5 story home on the lake; it is probably much more realistic for you to get a home that covers your basic needs such as a home that is close to work, in a good school district, and affordable with your current income.
Maximize Your Credit Score
Mistakes occur frequently on credit reports and they can significantly affect your score. Make sure that you check your score closely with the three major credit bureaus in Experian, TransUnion, and Equifax. Doing this well before you start the mortgage process will save you time and stress, especially if you discover that you have many mistakes on your credit report that need to be corrected.
Ensure that You are Pre-Approved
Making a quick phone call to a broker is all it takes to get pre-approved in the digital age. This is an essential step that will save you time by demonstrating which houses you can afford and which ones are outside of your price range before you even tour them.
Have Your Home Inspected
Homes require constant maintenance. If the previous owner didn’t complete necessary repairs or the home has other problems that need to be fixed, you could find yourself with thousands of extra dollars in cost awaiting you after the purchase. Don’t let this happen. Pay for a thorough home inspection up front and save yourself the hassle and money that will come back to bite you later on.
Assume There Will be Extra Costs
With a purchase as large and important as a home, there will always be extra associated costs. Small repairs or additions that need to be done can add up quickly, and you need to ensure that you have money to cover these expenses. Experts recommend saving 1% of the home’s value each year to cover these costs as they come up.
Your first time buying a home will be a mix of emotions: nervousness, excitement, fear, happiness, and the list goes on. However, it is important to keep a level head and not get caught up in the moment. If you need help with the homebuying process, consider working with a good mortgage professional. They are ready to take your call today.