10 Things to Remember For First Time Home Buyers

Sometimes we learn the hard way through our experiences in anything that we do and buying a house is no different. We have 10 helpful tips for first time home buyers to make the process easy.

Preparation in meeting the requirements

The first step in buying a home is to make sure that you qualify or surpass the requirements for a mortgage.

Save for your down payment

Mortgage has different types and it requires different down payments. You should save as much as you can because the more money you put in down payment the lesser the amount that you’ll have to borrow.

Credit score matters

Your credit history will be reviewed by your lender. Low credit score would tell the lenders that you may not make payments on time, you are less experienced in handling your debt or you have too much. You have to check first your credit report and fix it before you move forward in the process.

Have an emergency fund

It is essential that you have an emergency fund to make sure that you don’t take more debt in an unexpected expense or an emergency. Rule of thumb is at least 6 months worth of your living expenses. You will have enough money to cover your bills in case you or your spouse lose your job and until you find a new one.

Be financially and emotionally ready

Okay, so you qualify for the requirements, you have the money to put in a down payment and for emergencies. Buying a home isn’t just about being financially ready it is also a responsibility. You should know how to handle your bills, you know how to maintain your home by performing some home repairs, you take care of your landscape and appliances. These may take your after-work hours and weekends, so you need to see if you are financially and emotionally ready.

Get a pre-approved loan

Different lenders have different loan structures, rates, and fees. You have to determine which lender is best for your situation, shop around for your mortgage, and compare.

Be realistic of how much you can afford

Check the breakdown of the monthly payment first. Other fees, mortgage insurance, and interests may be included. Think of other expenses as well or ask a financial advisor.

Ask for professional advice

Real estate agents have knowledge on the market and have connections to find you the best offer. Helps you find the right home for your specific needs.
Financial advisor to make sure that you can afford owning a home from cost of ownership to tax implications and benefits of owning a home.  Real estate lawyer  to make sure that you understand the real estate agreement and the terms of the loan.

Make a competitive offer

Make an offer that’s in your price range. You can ask help from a real estate agent to negotiate a fair price to be able to reach an agreement with the seller.

 Home appraisal

The lender needs the appraised value of the house because it can not lend more than the value. You’ll also avoid paying more than what it is worth.