Deciding to buy your first home can be both an exciting and overwhelming time and you may not know where to start. Here is a short list of things you can do to help you get started on the journey to your first home.If you missed part one of Tips for First Time Home Buyers, you can read them HERE.
PAY OFF DEBT
Before buying a home, you should try to pay off as much debt as you realistically can. Combining existing debt with a brand new mortgage can throw your entire budget into upheaval. For tips on eliminating your debt, click HERE.
NO NEW CREDIT
When preparing to buy a new home and apply for a mortgage, do not open any new lines of credit. This includes credit cards and auto loans. This will help keep your credit score as high as possible during the application process.
When saving money for a down payment, don’t forget to take closing costs into account. On average, these costs can run anywhere from 2% to 5% of the price for which you purchase your home. In some cases, you may be able to negotiate that the seller pays a portion of your closing costs, but that will need to be done through your real estate agent.
CHOOSE YOUR MORTGAGE
There are several options out there when it comes to picking a mortgage product. Some of these products require little to no down payment while others offer different term lengths. In order to qualify for some of these loans, you will need to meet specific requirements.