Buying a home for the first time is an exciting venture! Yet, it still requires extensive planning and an abundance of careful thought. To ensure your home-buying experience goes as smoothly as possible, follow the tips below as provided by Rex Homes.
- Determine a Budget
This is, arguably, the very first step you must take when starting on your home-buying journey. Without a budget, you are setting yourself up for disappointment. How? You may end up falling in love with a house that you cannot afford! Narrow down your options immediately by determining what you can and can’t afford.
- Check Your Credit Score
Your credit score is just as crucial to your ability to buy a home as your finances. Why? If your credit score is too low, lenders will consider you too “risky” of a borrower and refuse to extend a home loan offer. Improve your credit score by paying down as much debt as possible before applying for a mortgage.
- Prioritize Your Needs Over Your Wants
You might have been dreaming of a specific style and location for years now, but you must be realistic about what can stay and what must go. Determine the essentials of your home and build your budget and expectations from there.
- Be Realistic in Your Expectations
After monitoring your credit score and deciding on a budget, your housing options may look a bit different from what you expected them to be. Don’t worry! This is normal, and you shouldn’t be discouraged. Don’t set your sights so high that they are out of your buying range. Be realistic in your desires, and you’ll have a much easier time finding a home.
- Save Up for a Deposit
A typical down payment amounts to about 20% of the house’s asking price. Check out the current market and get the median price to set your savings goal.
- Give Yourself Room for Surprises in Your Budget
Many first-time buyers find themselves blind-sided by surprise costs associated with the home-buying process, such as closing fees and unexpected repairs. Be prepared for this by adding some financial cushion to your savings.
- Get Pre-Approved
Once you’ve decided on the home you wish to buy, it’s time to get a pre-approval. A pre-approval letter confirms the maximum amount a lender is willing to offer on your home loan. These are only valid for 90 days, so make sure to strike while the iron is hot.
- Get a Home Inspection
You must always have your desired home inspected before purchasing, no matter how well you believe it was constructed. A professional inspector may notice things that you did not, and they will alert you to any elements of the home that do not stand up to code. Without an inspection, you risk purchasing a home that will inevitably present unanticipated repairs and related expenses.
- Work with a Mortgage Professional
A mortgage professional is an invaluable asset to your home-buying journey. They can advise you on every financial decision you make, ensuring you remain as financially secure as possible. Further, they will defend you against predatory lending tactics, guaranteeing the best mortgage for your circumstances. Get in touch with a mortgage professional today to get started.