Buying Your First Home Tips

So you’re ready to buy your first home...where do you begin? Here are a few things to consider as you start the process. Taken from Nerdwallet.com, let’s look at the following 3 categories:

FIVE First Time Home Buyer Tips

1)      Choose A Real Estate Agent Carefully

*Ask other recent home buyers for referrals.

*Interview the agent and ask about their experience helping first-time buyers find a home.

2)      Gather Your Loan Paperwork and Get a Pre-Approval Letter

*You will need to provide proof of income and employment, bank and financial statements, records of debt payments

*Apply for a preapproval at the start of your home shopping. This shows sellers and agents that you’re a serious buyer.

3)      Don’t Skip the Home Inspections

*Understand what’s included in the inspection and ask your agent what inspections might be needed.

4)      Buy Adequate Home Insurance

*Buy enough home insurance to cover the cost of rebuilding the home if it’s destroyed-it may be worth buying an umbrella policy to cover additional assets.

5)      Make the Most of Walk-Throughs and Open Houses

*In-person visits alert you to noises, odors, overall condition of the home, etc.

FIVE First Time Home Buyer Loans and Programs

1)      FHA Loan – 580 credit score, 3.5% down

2)      VA Loan – 580-620 credit score, 0% down

3)      USDA loan – 640 credit score, 0% down

4)      Home Ready and Home Possible – 620-660 credit score, 3% down

5)      State First-Time Home Buyer Programs – offer assistance programs tailored to the borrower’s location.

Five First Time Buyer Mistakes and How to Avoid the Mistake

1)      Not Determining How Much You Can Afford

*Avoid this mistake by using a mortgage affordability calculator to know what price range is affordable, what’s a stretch, and what’s aggressive.

2)      Getting Just One Rate Quote

*Avoid this mistake by applying with multiple mortgage lenders.

3)      Not Checking Credit Reports and Correcting Errors

*Avoid this mistake by requesting a free credit report each year from each of 3 main credit bureaus. You may dispute any errors you find.

4)      Making a Down Payment That’s Too Small

*Avoid this mistake by figuring out how much down payment is needed to give you affordable monthly house payments.

5)      Applying for Credit Before the Sale is Final

*Avoid this mistake by waiting until after closing to open new credit accounts or charging items on your existing credit cards.

It’s exciting to buy your first home! Use some of these tips to help navigate you….

HAPPY HOUSE HUNTING!!