Tips for First-Time Homebuyers

18 Feb Tips for First-Time Homebuyers

Buying your first home is a big step in life! It is exhilarating, but also an overwhelming time. To make sure you guide yourself through the process with accuracy and precision, here are a couple of tips that help make your journey of purchasing a new home less stressful!

Check Your Credit

Before you buy a home it’s best to start improving your credit. Your credit is one of the key-components for lenders to base their decision on whether or not to approve your mortgage loan. If you have a bad credit score at the time you request a loan, you may either be denied or have a high-interest rate. To avert your credit from dropping before buying a home, be sure you do not open up any new credit accounts.

Budget

Creating a budget before buying a home is essential. Before determining your budget, there are a few significant things to think about: knowing how much cash you’ll need at closing, private mortgage insurance, various expenses, and the debt you need to pay off beforehand. Be mindful of what you can afford.

Pay Off Debt

It is better to buy a home without any debt than with it. Owning a home is far more expensive than renting because you will be liable for all of the preservation and upkeep. These costs will rack up. Make sure all debt is paid, and you have an emergency fund stocked up before purchasing a home.

Downpayment and Mortgage

Keep in mind that your downpayment influences your monthly mortgage payment and interest rate, so begin saving for a downpayment early on. You will want to research mortgage options, as each opportunity comes with its negatives and positives. This will affect how much you pay and spend so if you are having trouble deciding which mortgage option is best for you, we would be happy to help you with your selection!

Purchasing a home is a big commitment, but with the right knowledge, you’ll find the process will go much smoother and will be more manageable. If you have any questions or would like to open up a savings or checking account with us, then call us at 843-549-2265. Happy house hunting!