Are you thinking about buying your first home? Don’t get overwhelmed!
With your first-time home purchase comes much intimidation. Our team of mortgage agents are experts on this topic and we’ve put together some tips for first-time home buyers to help along the way.
Here’s what you need to know…
First Time Home Buyer Dos
It’s important to get pre-approved for your mortgage before you do anything else. Why? Because you need to know for certain that you can afford the home you want to buy, and your real estate agent will need to know you’ve been pre-approved first.
A pre-approved mortgage can help you to avoid any potential negatives that can work against you, such as problems with your credit history or score. Things like this can cost you thousand extra in interest with your mortgage loan.
Connecting with the right mortgage professional can ensure that your pre-approval goes off without a hitch.
Know how much you can afford and stay on budget
Although you may be able to afford your new home or afford to go over budget a bit with your purchase, this doesn’t mean you won’t have to sacrifice to get your dream home. Buying a home is much different than renting, there are more expenses.
Life is also uncertain so make sure that you plan for the unexpected as well. If you get approved for more than you need to buy your home, don’t feel obligated to use every dime you’ve been approved for. This could put you in a bad financial position if, for example, you got laid off from your job.
First Time Home Buyer Don’ts
Don’t get too attached
The sad truth is that most first-time buyers don’t stay in their first home for very long, typically only five to ten years. So, although you might be looking for specific features or other aspects in your first home try to keep an open mind. Your first home is just a place for you to start out, so don’t get too attached.
Don’t skip your mortgage approval
An approval differs from a pre-approval, so it’s very very important not to skip this step before you make your biggest purchase ever. This step is often times overlooked resulting in unfavorable mortgage loan terms or denial altogether.
To get approved for a mortgage you should have, and be able to show:
- Your current income
- Good credit history or an attempt to repair it
- Savings that can be put towards your down payment
Also, it’s wise to limit your spending until you close, this will work in your favor.