Buying a home can be an overwhelming process. From financing to negotiating to closing, there are a lot of moving pieces that can leave home buyers bewildered.
Buying a home is still considered a vital aspect of the American dream. As a first-time buyer, you have access to state programs, tax breaks, and federally backed loans if you don't have the usual minimum down payment—ideally, 20% of the purchase price for a conventional loan—or are a member of a specific group. And you may qualify as a first-time buyer even if you're not a novice.
Before you start looking for a home, you should ask yourself a few questions:
Searching for your dream home can be a long, time-consuming process. However, working with our professional team will make the process much more efficient!
Start saving early
Here are the main costs to consider when saving for a home:
Check and strengthen your credit.
Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer. Having a higher score will generally get you a lower interest rate, so take these steps to strengthen your credit score to buy a house:
Stick to your budget
A lender may offer to loan you more than what is comfortably affordable, or you may feel pressure to spend outside your comfort zone to beat another buyer's offer. To avoid financial stress down the road, set a price range based on your budget, and then stick to it.
Consider looking at properties below your price limit in a competitive market to give some wiggle room for bidding. In a buyer's market, you may be able to view homes a bit above your limit. Your real estate agent can suggest a range for your offering price.
Pay for a home inspection.
A home inspection is a thorough assessment of the structure and mechanical systems. Professional inspectors look for potential problems, so you can make an informed decision about buying the property. Here are some things to keep in mind:
Buying a home can be an overwhelming process with several steps. From financing to negotiating to closing, there are a lot of moving pieces that can leave homebuyers bewildered. But, like any big project, a successful home-buying experience involves getting the details right from start to finish. Preparing yourself for a big purchase, budgeting, research, etc., are essential to getting you your dream home.
We bring a customized, unique approach to mortgages. Our lending solutions use the perfect hybrid of human-driven insights and technical prowess to process loans faster and significantly reduce costs.