What are the things you should remember as a first-time homebuyer? I’ve compiled a list of five tips to help the process go smoothly.
1. How much money do you need to put down? A lot of times you’re thinking you need to put down 20% when you could actually get a loan that lets you put as little as 0% down on your first home.
2. What is your credit score? A common misconception is that your credit score needs to be in the high 700s for you to be able to buy a home. The reality is that a good 30% of people who got loans in the last two quarters had less than a 700 credit score. Even if you think you’ve got a low credit score, run it by a lender anyway. You may be surprised and qualify for a home loan.
3. Make sure to get a pre-approval. To make the process more smooth, meet with a lender to get yourself pre-approved before you even start looking at homes. That way you know that you’re ready to start the process when you find your new home.
4. Are there any assistance programs that you qualify for? If you’re struggling to come up with a down payment for your first home, there are assistance programs designed to help remove some of that burden.
There have also been changes to how student loans are treated by lenders, meaning it’s easier to qualify for a mortgage today. Take the time to buy a house now instead of waiting, as the guidelines may change in the future and make it more difficult to buy a home later down the road.
5. Be sure to hire an expert advisor. Hire a real estate agent who has experience in helping first-time buyers navigate the process. All of the agents on my team are here to help you, guide you, and counsel you. We want to make the home buying experience as enjoyable as possible and help you realize your dream of owning your first home.
If you have any other real estate questions or you’re looking to buy or sell a home, please give me a call. I’d be happy to help.