Being a first time home buyer can be exciting, and a bit intimidating! If you are getting ready for your first home purchase, please follow the tips below to ease the buying and finance process.
- Check selling prices carefully of similar homes in your desired neighborhoods.
- Use a good mortgage loan calculator to get a better idea of what your payments would be.
- Research your likely closing costs. The upfront costs of home purchases should never be ignored. Closing costs include loan origination fees, taxes, title and settlement fees.
- Look carefully at your budget. We recommend that you do not spend more than roughly 28% of your income on housing. If you go beyond 30%, you could be house poor.
- Find a good mortgage lender/provider of loan services. Many mortgage companies offer special programs for first time homebuyers.
- Talk to several experienced realtors in your area. Do they think prices will go up, go down or stay the same in the next year?
- Look at your credit scores. Poor credit will prevent you from getting the best loan terms, or may prevent you from buying entirely. Get a free annual credit report and look at it carefully for any mistakes or unresolved credit issues.