First Time Home Buyer

Tuesday, October 8, 2019   /   by Rhonda Spivey

First Time Home Buyer






Your Checklist Before You Buy Your Next Home


 


The time has come and you are ready to buy, but before you start searching for your next home review this checklist. This list helps you prepare your budget in advance and guide you to financial success in the future.


1. Reduce Debt & Increase Credit Score: Before you start looking for your next home you should request a credit report. Talk to a lender right away and ask how to obtain your score in a way that does not show up negatively on your report. This will give you a starting point on understanding your credit score before you request a loan. Your credit score will influence the interest rate of your loan.

2. Save Money to Set Yourself Up with a Large Down Payment: The larger the down payment the better. FHA loans will require at least 3.5% down. VA loans are $0 down. Conventional loans are most of the time 20% down however on occasion you can be approved for a conventional loan with 5% or 10% down.


3. Keep a Conservative Budget: It’s just not the list price that is included in the purchase. Keep in mind there are inspection fees, earnest fees, Option period fees, moving expenses, and typically new furniture purchases that you should prepare for in advance. Along with the initial moving expenses you should also be aware of your monthly budget moving forward. With homeownership comes property taxes, HOAs, home repairs, and more. You want to make sure you are prepared for future budgeting as well.

4. Get Pre-approved: Your pre-approval can help if you are putting in an offer against someone who is not...makes you look like a more ready now buyer. Your pre-approval is based on your actual income, debt, and credit history. This is different from pre-qualification, which is how a lender determines how much you can afford.

5. Set Your Home Buying Budget: By getting your finances in line before your first home showing you know the price range of a home that you can actually afford. It is important to set a realistic budget that fits your income level and characteristics you want in a home.

6. Find an Agent You Trust: An agent will be able to guide you along the way and educate you n the home buying process. Also, keep in mind an agent usually is very well connected to the other professional you will need before closing day.


As you begin the process to find your next home checking these items off your list will provide you with a more successful home buying experience. Our team is here to help you! Let us know the area and/or neighborhood you are looking to live along with your top needs our team of professionals will assist with finding your next home.


 









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