My husband and I recently purchased our first home. When we started looking for homes to buy, we had no idea how much work the process would take. Here are some tips to make buying your first home far easier — from a recent first-time homebuyer:
1. Check your credit score.
Having a higher credit score can significantly lower your mortgage rate. Take steps to reduce your credit debt prior to pre-approval. When our loan officer recommended that we pay off our credit card, we called the credit card issuer and figured out how much we should offer to pay off our debt. They accepted our offer. No matter what you owe on your credit card, offer a little bit less than what you owe. You may get lucky and be able to pay off your debt for less!
2. Know what documents you’ll need.
Buying a home will require you to keep plenty of important documents on hand. You’ll need bank statements, pay stubs, previous W-2 forms, and social security information. Before you start looking at homes, get these documents in order — you may need to move quickly to land your dream home!
3. Look into first-time homebuyer programs.
Make sure that you research whether your area has a first-time homebuyer program. Many areas offer first-time homebuyer programs, which can require lower down payments, help you pay closing costs, and provide you with important information about the homebuying process.
4. Research the area before you buy.
Make sure that you research the area in which you plan to purchase or build a home. Look up the crime ratings, the quality of local school districts, how the neighborhood looks, and what else is in the area. Knowing what the neighborhood is like will tell you a lot about whether the home that you’re eyeing really is your dream home.
5. Stay within your budget.
Just because you get approved to buy doesn’t mean that house is the best fit for you. Don’t purchase a home if you’ll go into debt trying to afford the mortgage. My husband and I got approved for multiple homes that we liked, but some of the mortgages were too expensive, so we opted for more affordable options. You’ll find plenty of beautiful homes in your price range, so stick to your budget.
6. Know that your closing date may change.
Be prepared for your closing date to move at least once. Permits may take a while to process, and inspections may take shorter or longer than you initially expect. This can be frustrating and stressful, especially if you’re on a strict timeline, but stay patient. You’ll be home before you know it!
Buying a home can be overwhelming, but it’ll all be worth your time and effort. When the process gets difficult, take a deep breath, and think about all of the memories that you’ll make in your new home. You’re sure to find the perfect home to start an exciting new chapter of your life!
Featured Photo by Aubrey Odom on Unsplash.
Buying your first home is such an exciting adventure, but it can also be overwhelming! These tips are super helpful.