Tips to Help You Buy Your First Home
Buying your first home is an incredibly thrilling process. However, the first time doing anything is usually filled with mistakes and uncertainty.
For this reason, we have compiled a list of the best tips to help you buy your first home!
- Save 20% For Your Down Payment.
Most lenders want to see that you can pay at least 20% of the home’s value with your down payment. While there is some slight flexibility in this percentage, this tends to be the bottom end of the range and few lenders will consider any amount lower than 20%.
Saving for this payment can be difficult and may require you to make some sacrifices in your daily routine leading up to the point where you purchase your home. For example, you may need to cook the large majority of your meals at home instead of going out to eat. This will save you a significant amount of money which can then be put towards your down payment.
- Create a Detailed Wants and Needs List.
All of us would love to own the houses we see on TV and in movies: perfect mansions that have everything we want in a home and more.
But for the vast majority of us, this is unrealistic. Most people will have to settle for a home that fits all of their needs rather than their wants.
Therefore, it’s a good idea to create a detailed list of the things you absolutely need to have in your new home, and a separate list of things that you would like to have in said home, if possible.
This keeps you grounded and allows you to make an informed choice on one of the biggest purchases you will ever make.
- Closely Check Your Credit Report.
When applying for a mortgage, lenders will largely use your credit score to determine your offer. Unfortunately, if you don’t regularly check your credit report, errors can often accumulate which, in turn, drastically change your credit score.
This can cause you to get a much worse offer than you deserve. To prevent credit report errors from occurring, the best method is to regularly check your report online. each of the three major credit bureaus has a website where you can lodge complaints if you see an error.
But be warned: the process of correcting these errors can take a few months, so don’t expect to be able to do it all in one sitting.
- Work with a Mortgage Professional.
If you want to go through the homebuying process on your own, you’re more than welcome to do so. There is no legal obligation that compels you to work with a mortgage professional. Some people feel comfortable researching the process and handling all of the issues by themselves.
However, housing experts like the ones at Rex Homes are a great asset for first time homebuyers. If you’re unsure of what steps to take or where to turn for help, mortgage professionals can guide you along the way.