Doing anything for the first time can be a scary process. This is especially when it comes to buying a home. Family, friends, coworkers, and anyone else you meet will invariably give you advice and much of this advice will be contradictory or confusing.
So, as a first time homebuyer, how can you possibly know which advice is sound and which advice should be ignored?
In order to address this issue, we’ve compiled a list of tips for the first time homebuyer. While you may still want to follow the advice you receive from those who offer it, this list will serve as a starting point. Additionally, if you find yourself with lingering questions after reading this article, you should consider a consultation with a mortgage professional who can help you complete the homebuying process with ease.
Save at Least 20% of the Home’s Value for a Down Payment
This will provide a number of benefits to you including:
- Improving your loan application.
- Saving you tons of money over the life of your loan.
- Putting you ahead of the competition.
Depending on your financial situation, this may be a difficult prospect. However, the more money you can put towards a down payment, the better off you will be.
Create a Needs vs Wants List
Don’t fall into the trap of buying a house based solely on your “wants”. It’s important that you define the things that are absolute essentials for your new home. Once you’ve covered those, if you still have a bit of wiggle room, you can then look for features that you would like to have, but don’t necessarily need to have.
Boost Your Credit Score
Checking your credit report with the three major credit bureaus (Experian, Equifax, and TransUnion) will enable you to see where your credit score currently stands. If there are errors that are driving your score down, it’s important that you correct them as quickly as possible.
Your credit score is one of the biggest factors affecting your mortgage application, so ensure that you take all of the necessary steps to keep this number high.
Don’t Skimp on Your Home Inspection
The cost of a home inspection may make you groan. You might think that this is an unnecessary process. After all, it looked perfect on all of the tours.
Unfortunately, a home inspection is not just a good idea, it’s essential to make sure that you are not purchasing a home that will cost you thousands in repairs down the road.
Keep the Extra Costs in Mind
It’s important to remember that there will always be extra costs that you might not necessarily think about at first. This is a normal part of the process, and many professionals recommend saving 1% of the home’s value each year to handle these costs and repairs.
Use a Mortgage Professional
There is no legal requirement to use a mortgage professional for the homebuying process. However, especially when it is your first time, these experts can make the process incredibly easy. For questions about prices, the real estate market, and anything else that may come up, your mortgage professional will be there to help. The professionals at Rex Homes have some great additional information on their blog here: https://blog.rexhomes.com/9-tips-for-the-first-time-home-buyer/