Purchasing a home is a major life decision, and requires a lot of care and preparation. You’d be surprised how many overlook the simple, but necessary steps when anticipating a mortgage. We’re providing a shortlist of tactics that will help you not only in your real estate endeavors but in life overall. Don’t miss these first steps when buying a home!
Consider Your Savings
Businessman Dave Ramsey stresses the necessity of an emergency fund. He states that when you have a mortgage, it’s wise to save a lot of money for expenses that may be coming your way after you buy. Owning a home is a major expense, so it’s best to stay prepared!
Check Your Credit Score
Many people overlook the importance of having a good credit score and fail to build it up beforehand. In most cases, you’ll need a score of at least 620 or better. The better your credit score, the more lenient your interest rates will be. Don’t allow late payments to become a habit, and pay close attention to this next tip!
Pay Off Your Debts
This is major and ties into improving your credit score as well as putting away ample savings. The student debt crisis is no joke, but this shouldn’t stop you from whittling down that pile of debt you owe. Payoff what you can manage immediately. Maybe it’s a car or a credit card. You don’t have to pay everything off all at once. Work on decreasing what you owe bit by bit, tackling the lesser expenses first.
Offer More, but Stay Within Budget!
This year, the market has been incredibly competitive. But whether it’s a good year or not for buyers, it’s always best to stay on the safe side by offering a bit more than what the seller’s asking. Of course, a deal’s not a deal if you don’t have the money to back it. Never offer what you know you can’t afford. Find a great deal that’s well within your budget and raise the price!
Explore Mortgage Options
There are plenty of mortgage options, some involving loans, and some not. If you’re a veteran, VA Loans are guaranteed by the Department of Veteran Affairs. You could be paying as little as 0% down! There are also, FHA Loans, USDA Loans, and Conventional Mortgages. While some of these might not always be guaranteed, you could be looking at a 3-3.5% down payment. Loans and conventional mortgages are just one of the many great ways to gain financial support!
Purchasing a home for the first time doesn’t have to be daunting. Most of what we listed can be done way before you even consider buying! These are good life lessons in general, as you don’t want to be left high and dry with your funds (or lack thereof). Improve your credit, save a lot, and make an offer sellers can’t refuse! However, never overspend. Once you have these things in order, you should be well on your way to making a down payment on that first home!
Want more information on buying a home for the first time? Visit our website or blog! Our fabulous realtors at Meraki Real Estate are eager to support you in purchasing your home!