Purchasing your very first property is a huge step in life, and you can’t take the process lightly. There are many components to the process of purchasing a home. It will help to do a bit of research on the steps involved, before diving into the full experience of purchasing your first home.
Take some time now to begin your journey of enlightenment on the home-buying process, and check out some crucial tips to get you on the right track. Invest your money wisely, and live happily ever after in your new home.
Secure your down payment
Before you ever start looking for a home, you need to tackle saving up the down payment. There’s no need to try and start the process without a dime to your name. You need money to buy a home, and the bank won’t take care of everything.
Finding the perfect first home takes time. Plan at least a year ahead of when you intend on moving into a new property, so you have time to cover all your bases.
Get familiar with your credit report
Become real familiar with your credit report from all the main reporting agencies. If there are any blemishes (which there probably are), you will want to clear them up before you go to buy a house.
It may take some time to present a well-groomed credit report to prospective lenders, so again, plan ahead. Your credit could also have some unjust blemishes which can be cleared up with a few phone calls.
Explore your mortgage options
There is not one simple way to acquire funding for a new home; there are several. Educate yourself on the mortgage options made available to you, so you can choose the plan which is best suited to your financial needs.
- Conventional mortgages – You go to your local bank, and you take out a mortgage loan. These loans require as little as 3.5 percent down.
- Federal Housing Administration (or FHA) Loans – FHA Loans are great for permitting lower monthly payments for homeowners.
- Veterans Affairs (or VA) Loans – VA Loans are aimed towards providing affordable housing options for military veterans.
Get a letter of pre-approval
Get a pre-qualified loan amount from a mortgage lender. They will then provide you with a letter of pre approval for your home loan, and you can take that number to a realty agent.
Having a physical representation in hand, showing how much money you have to work with will make you look like a more reliable homebuyer to sellers and give you the upper hand over others who cannot present the same documentation.
Hire an agent to help
Once you’ve secured your method of payment for a new home, it’s time to begin working through the more enjoyable part of buying a house. Hire an agent to help you work the process, and secure your opportunity to get the best bang for your buck.