5 Steps to Purchasing Your First Home
First time home buying can seem overwhelming, between down payments, interest rates, mortgage rates and more, it can all seem very complicated. However, there are some key steps to follow to help make your first home purchase a
little less stressful.
1. Start saving for a down payment early.
If you haven’t already, now is the time to start saving for a down payment. This is the time to really buckle down and figure out your finances. For first time home buyers you ideally want to put down 20% of the homes price. Keep in mind a down payment can also be as low as 5 or 10% for different types of mortgages. (Ask us about government programs and assistance for those in the military).
2. Check your credit score
Along with your down payment, you’ll have to get your credit score in check. A lender will review your credit score to see what you can afford, at what interest rate and whether they will lend you the money. Pro tips: Improve your credit score by paying all of your bills on time, hold off on applying for new lines of credit and avoid closing any old accounts.
3. Get pre-approved for a mortgage
Getting pre-approved for a mortgage will help narrow down houses in your price range. During this step, you’ll also need to organize and submit your financial history (income, assets, debts). So, get those bank statements, tax returns, and credit reports in order as soon as possible.
4. Hire the right real estate agent and title agency for you
This might be one of the most important steps of all, because buying a home for the first time is one of the biggest decisions and purchases you will ever make in your lifetime.
You want the best team possible in your corner!
Not only will a good real estate agent show you homes within your budget but will have your back during negotiations and help you understand the entire buying process with ease.
A title agency or title agent is another important player on your team.
A title company will check the title history, deeds, liens, and anything else that may be outstanding on the title of your new potential home. mind you always have the right to choose who you want to hire as your title agent.
5. Get ready to shop!
Although this step is the most fun of all, be prepared with a detailed list of your wants, your needs, and the must have features of your new home. Make the most out of open houses and lean on your team of experts for guidance, especially in the post-pandemic real estate world!
Need help navigating the process or just have questions?
Give us a call at 732-359-2009.