Are you considering buying your first home? If so, read this article for a few tips! To read full article, click the link below!
Decide If Buying Makes Sense for You
This may seem like an obvious thing to consider, but until you do the math and research, the answer may not be as straight-forward as it seems. In many large cities, buying doesn’t always get you the same value as renting. In places with competitive real estate markets, where large down payments are required to be an attractive buyer, sometimes you’ll find that renting means less money out of pocket every month with benefits like landlords to make necessary and costly repairs.
Save for a Down Payment
This is probably the biggest hurdle of all for first-time homebuyers. Whether you are young and haven’t been in the workforce for long enough to build a nest egg or older and just can’t save what you’d need, a down payment can be a huge deal breaker. There is no easy answer for how to save thousands upon thousands of dollars.
Get Your Credit in Order
To be a “well-qualified buyer” you need to have good credit. If you don’t know your credit history or your credit score, find out what it is. There is a free annual credit report available to start the process. You’ll be able to see what the three major credit reporting agencies have on file for you. You won’t get your credit score from these reports; however, just your history. A report that includes your score can be purchased from the three agencies if you want to learn how lenders see you. The minimum a lender like FHA wants to see is 580, but a score of 740 or higher makes you a very good candidate for a mortgage.
Get Pre-Approved for a Mortgage
Once you’ve got your credit in good order, you want to get pre-approved for a mortgage. This may seem like the most intimidating part of the process, but it actually will help you when you’re looking for a home. Many realtors require that you get pre-approved before showing you homes because they want to know that you’re serious, and that if you do find a place, you’ve got all your ducks in a row to make an offer.