Buying a home for the first time can be an exciting and rewarding experience. But it’s not without its challenges, such as figuring out how much house you can afford, determining if you have enough money for a down payment and ensuring that your credit history is in good standing.
Here are some tips for first time home buyers:
Estimate what you can afford. The first step to buying a home is knowing how much house you can afford. Homebuyers need to estimate their monthly housing costs — including mortgage payments, property taxes and homeowner’s insurance — as well as other expenses associated with homeownership, such as utilities, maintenance and landscaping. To do this, you’ll want to know how much money you’re earning every month after taxes and other deductions; this number also includes any savings you might have set aside for retirement or investments.
Budget for the unexpected. You don’t want to get surprised by hidden costs, so set aside money for contingencies like closing costs and other fees associated with buying a home.
Get pre-approved for a mortgage loan before you search for homes so you can make an offer quickly if you find something that works for your budget and needs.
Make sure your credit score is high enough to qualify for a loan amount that will cover the purchase price of the home plus closing costs and other expenses associated with buying it. You should also have enough savings set aside to cover down payments, closing costs and moving expenses.
Don’t buy more house than you can afford — even if it’s on sale! The mortgage payment plus taxes and insurance should not exceed 25% of your gross monthly income (before taxes). Your credit score should be at least 700 or above; otherwise you might have trouble qualifying for the best mortgage rates available today.
Shop around for a mortgage lender. Get quotes for different types of loans from several lenders before deciding which loan is best for you and your financial situation. Your current bank may not offer the best rate, so check with other banks as well as credit unions or other financial institutions in your area.
Understand homeownership costs beyond just the interest rate on your loan. There are other costs involved with owning a home besides monthly mortgage payments such as property taxes, homeowner’s insurance and maintenance costs.
Get an inspection before making an offer on a house. Inspectors look for structural problems like termite infestations or dry rot as well as more cosmetic issues like cracked windows or damaged paint jobs. You may want to hire an inspector even if there isn’t any immediate visible damage — just in case something goes wrong after the sale closes, which it sometimes does!
If you are a new home buyer looking for Swindon homes for sale, contact us at https://www.milesbyron.com/properties-search/?status=for-sale.
