6 First Time Home Buyer Tips That Will Help You In The Long Run
1) Save Save Save
Start saving early. As soon as you think you may want to buy a house in the future it is time to start saving for the down payment and all other expenses that come along with buying a house.
A conventional loan will require a 20% down payment. For example if you buy a house for $350,000 you will need $70,000 for the down payment.
If that seems way out of your ball park to be able to save, don’t worry, there are other programs out there that allow you to have a much lower down payment. Make sure to speak to your lender about all your options before moving forward.
2) Check Your Credit Score and Make Sure To Fix Any Issues
Mortgage companies will run your credit and use that to determine how much to lend and what your interest rate will be. Any errors on your report could result in a much higher interest rate.
3) Keep Money Set Aside For Closing Costs & Moving costs
Sometimes buyers aren’t aware and/or prepared for the closing cost expenses and all the expenses that come with moving. There are taxes and fees such as the attorney fee, title fee and other miscellaneous fees that coming along with closing on a house.
Your lender will let you know how much closing costs will be so you will know before closing just how much you will need to have put aside.
4) Ask Your Lender About All First Time Home Buyer Programs
Coming up with 20% for a first time home buyers can be tough but there are many first time home buyer programs that you should speak with you lender about.
Some government assisted programs that are made available to you include:
- FHA Loan
- VA Loan
- USDA Loan
5) Get Pre-Approved
Getting pre-approved will show the seller that you are a serious buyer. If there is a bidding war or other interest in a home you want you could be one step ahead of your competition with a pre-approval in place. Also, this gives you time to get to know your lender and build a comfortable relationship.
6) Don’t Apply For Credit Until After You Have Closed
Whatever you do, DO NOT apply for any new credit during the home buying process. Applying for new credit will affect your credit score and will just show you lender you are adding more debt in the future. No matter how much you want to start shopping for the new furniture and take advantage of the no interest credit cards the furniture companies offer, do yourself a favor and just wait until you closed.
If you have any questions or are ready to start the process of buying your first home call me at (609) 713-7759, email me at cgrevelbi@gmail.com or just simply contact me here.
