For this blog update, we’ll offer some tips to help you get through the home buying process as smoothly as possible. In addition, we’ll also add tips on how you can prepare for home ownership. Buying your first home can be daunting with all of the talk of closing costs, interest rates, credit scores, and home inspections. However, after reading this blog you’ll be more prepared for any obstacles in your path!
- 1 Minute | No Hard Credit Check
1) Don’t Let Emotions Decide On A Home For You
Too many people can be caught in the romanticism of buying a home, thinking that they must buy a home that looks a specific way or has all of the features they want. There’s a very high chance that the home you’re looking for may be too expensive and out of your price range, especially if the market is competitive.
Contacting a real estate agent and visiting open houses is one of the more exciting aspects of buying a house, but try not to get tunnel vision on a “dream” house. There may be a more suitable property for you to purchase that may result in a more comfortable monthly payment and lower property taxes as long as you are a bit more flexible on it’s features and amenities.
For example, it may be more cost effective for you to buy a home that doesn’t have that granite counter top you’ve always wanted in your kitchen. If you buy the home as is, you can remodel the kitchen yourself as part of a home improvement project. Now not only are you happy with your new kitchen, but you’ve also just paid yourself by adding equity to your home!
2) Use A Mortgage Calculator
A mortgage calculator is one of the best ways to determine what a comfortable mortgage payment can be for you. Another feature of the mortgage calculator is the ability to help you determine how much house you can buy.
By plugging in a few numbers, like what your down payment will be, you can determine how to keep your mortgage payment within 25% of your monthly income. And by plugging in the price of the home, you can see exactly how high you can go before the mortgage payments become too much. Remember, you want your monthly payment to stay below 30% of your monthly gross income. This amount also includes homeowners insurance, property taxes, and private mortgage insurance.
3) Request and Review Your Credit Report Before Applying For A Loan
Unfortunately, one of the biggest problems that first time home buyers miss are credit issues. Sometimes, your credit card company can make a mistake and report one of your payments as late. And if your loan underwriter sees that, they are going to ask why that happened.
At this point, it has already been seen by the underwriter and is too late to dispute. If you were to choose to dispute this late payment, you’d have to wait for your case to be received, reviewed, and decided upon. This can take anywhere between 30 and 90 days, which can drag on the home buying process. We recommend taking care of any credit blemishes before you start the home buying process.
4) When You Visit Homes, Explore The Neighborhood
A good idea that you should practice when visiting open houses is to check out the neighborhood. You can get a good idea of what kind of neighbors you have by taking a look at how they keep their homes.
We’d also recommend seeing what amenities are in the area. Do you have a grocery store that’s close? Are you near an airport? Are you by any forms of entertainment? These can all be wonderful or dreadful places to live depending on what’s nearby.
If you have kids, you also want to make sure your neighborhood seems safe. Additionally, you may be able to tell if there are other kids around the same age as your children. This can help with meeting new neighbors, making new friends, and having free babysitters for your children!
- 1 Minute | No Hard Credit Check
5) Bring A Friend For A Second Opinion
Bringing a friend or family member might help you detect things you would have otherwise missed. Maybe it’s a feature you thought this specific house didn’t have and it does, or a possible dangerous hazard that can cause harm to you or your children. You never know what you may miss, especially if you’re too focused on asking questions about the home and answering questions about yourself.
Please click here for Part 2!
