Buying your first home is a very exciting milestone in your life. However, the process may seem a little bit more daunting than expected. There are a lot of things to consider with such a major investment. If you are a first-time home buyer, here are 3 essential tips to prepare you for your first home purchase.
Determine Your Budget
You might have an ideal purchase price in mind, but there is another financial factor that you must consider before you start making offers. That is your debt-to-income ratio. You can find this percentage easily by adding up your total monthly costs, adding your future monthly payments associated with your new home, and dividing that number by your monthly gross income. Ideally, the percentage you get should be below 43% to avoid any issues with the mortgage process. This often gets overlooked in the excitement of house hunting.
Check Your Own Credit
If you have not checked your credit score and history in a while, it is certainly time now. Your credit is going to play a huge role in your mortgage approval process. The better your credit, the better your mortgage rate. Fortunately, you can get a free yearly credit report online. It’s important that you check it as early as possible to give you enough time to clear up anything that may hurt you such as delinquent accounts, or balances in collections. If you get on top of your credit, you will be in great shape for your purchase.
Consider All of Your Options
It’s easy to get carried away and fall in love with a house right away. This is especially true when it’s your first time buying a home. While it’s very exciting to choose a future place to live in, you have to make sure that you consider all of the available properties that match your criteria. It’s good to have backup options in case your first choice doesn’t work out. That way, you won’t be disappointed either way, and you won’t have to scramble later on to find a house.
There are a lot of things to consider when buying a home. If you’re a first-time buyer, remember these tips to give you an advantage for the process. This is a very exciting time in your life, and you want to make sure you do it right.
If have any questions regarding your first buy, feel free to contact me.
RE/MAX Advance Realty