05/25/2021
Buying your first house can be an overwhelming and scary thought! There are so many steps to take and requirements to meet when purchasing a home, and it’s easy to feel anxious about the process.
Here are 6 steps you should consider taking before starting the journey to becoming a homeowner.
START SAVING EARLY
Remember that, to buy a house, you’ll have a down payment, closing costs, and move in expenses to pay for. It’s important to start saving early to ensure you are prepared and can cover the costs of purchasing a home.
DECIDE WHAT YOU CAN AFFORD
Figure out how much you can comfortably afford before starting the house-hunting process. Be sure to set a price range based on your income, debt, down payment, credit score, where you plan to live - and be sure to stick to that budget when you are looking for a house.
STRENGTHEN YOUR CREDIT
Your credit score will determine whether you qualify for a mortgage and will give you access to better home loans. The higher your credit score, the lower the risk that you’ll default on your loan - and the lower the interest rate you’ll qualify for.
CHOOSE A REAL ESTATE AGENT
Finding a good real estate agent to work with is key when buying a house. Especially as a new home buyer, it’s important to have someone by your side through the entire process. A reputable agent will be in your court, on your team - they will be able to answer questions you have and will walk you through each step of the home buying journey.
EXPLORE DIFFERENT MORTGAGE OPTIONS
There are a variety of mortgages available with different down payments and eligibility requirements. Many cities and states also offer first time buyer programs, which often include low-interest-rate-mortgages combined with down payment and closing cost assistance. Be sure to explore all of your options before taking further action.
GET PRE-APPROVED
It’s a good idea to get pre-approved before you start the house hunting process. Getting pre-approved will help you to reduce financial “surprises”, will define your search, and allow you to move quickly when submitting an offer.
