Tips for First Time Home Buyers

Tips for the first time home buyer!

Buying your first home is exciting and overwhelming all at once, however very achievable. Use these simple tips to best prepare you for one of the largest investments you’ll make in your lifetime.

Save for a Down Payment & Closing costs

The earlier you can save for a down payment the better. While you don’t need 20% down to buy a home, the more money you invest, the easier it is to get financing and the less your PMI or Private mortgage insurance will be. In addition, your mortgage payment will be less and which will make your mortgage payment more affordable throughout the life of the loan.

Check your Credit

Your credit score is one of the most important factors in your application. It’s what lenders look at first and if it’s not high enough, they won’t approve your loan.

Check your credit score and report for $1 by using a credit monitoring software. Check all three credit reports and see what you need to fix. Look for:

• Late payments
• Credit utilization over 30% of your credit limit
• Collections
• Errors

Depending on what credit card company you have, they may offer you an option to be able to see your FICO score. However, you will not see your full credit report, thus why a credit monitoring software is recommended.

Get Pre-Approved

Before you shop for a home, get pre-approved. Even if you think you have ‘great’ credit and good income, find out what a lender thinks first. We recommend getting quotes from at least 3 lenders so you can compare your options side-by-side.

You may find you get approved for more or less than you thought you could afford. A pre-approval letter also helps get your foot in the door with sellers. Many real estate agents will not start showing you homes until they know for sure how much you can get approved for.

Stick to your Budget

It’s tempting to go ‘slightly’ over your budget especially when you see it only makes a difference of a few dollars in your mortgage payment, but it’s a bad idea. Don’t get caught up in a bidding war or get so emotionally attached to a home that you outbid yourself. Stick to your budget and know that the right home will come along and avoid first time home buyer mistakes.

Exhaust all First-Time Homebuyer Assistance Programs

As a first-time homebuyer, you have many options for assistance. Reach out to me to find out what programs are available to you. From low and no down payment loan programs to down payment grants, there are programs for borrowers of all walks of life. You can schedule a FREE consultation by clicking HERE.

Bottom Line

First-time homebuyers have plenty of opportunities to secure a home. Even if you don’t have a 20% down payment or perfect credit, there are options available for you. The key is to maximize your qualifying factors as early as possible so you increase your chances of securing your dream home.

I’m always available for questions or help – together we can help you prepare for and buy your first home, making it a stress-free and fun process!