Buying a home for the first time can seem like a daunting task. However, the seemingly overwhelming idea of purchasing a home can be pared down to a few easy steps. Read on to learn what it will take to buy your first home.
Determine how much you can afford
It’s extremely important to have a good understanding of how much you can afford as a first time home buyer. Your income, the amount of your down payment, your mortgage type and your interest rate all play a role in what type of house you can afford. You don’t want end up purchasing a home that leaves your wallet empty each month.
Check your credit score
Your credit score is crucial when you’re buying a home. Your credit score will determine what kind of a loan you can get and how much your interest rate will be. The higher your credit score, the better the loan you’ll be granted. If you have a few blemishes on your credit report, like unpaid credit cards, you’ll want to get thing in order and get your score as high as possible before so that you can get a low interest rate.
Getting pre-approved for a mortgage means that a lender has reviewed your income, credit score and finances to assess what kind of money you will be granted for a mortgage. Once you understand this, you can begin to shop around for homes in your price range without wondering whether or not you can afford them.
Get your down payment ready – In order to get the best rates, you’ll want to have a down payment of about 20%. If you don’t think you can save up for a 20% down payment, you can put down less, but you won’t be guaranteed the best interest rates.
Find a realtor
When buying your first home, it’s important to find a realtor you can trust. This person will be doing a lot of the leg work for you when it comes to securing your dream home, so you’ll want someone you can easily work with and who understands what you’re looking for.
Search for a home – Your realtor will get to know what type of a home you’re looking for and work with your budget to find something perfect for you. You may also want to do some research on your own.
Submit an offer – Once you’ve found a house you love, it’s time to make an offer! Your realtor will help you through this process and help you understand a closing timeline so you can move in as soon as possible.
Don’t be intimidated buying a home for the first time. Let our team of experienced realtors help you navigate through this process! Contact us today to set up an appointment.