You’re getting ready to purchase your first home. What an exciting time! Keep that excitement alive and stress at bay by learning more about the home buying process. Check out these tips for first time home buyers before you begin house hunting.
💯 What Credit Score Should I Have to Buy a House
Your credit report and credit score are important when it comes to getting a mortgage loan approval. Your credit score is the evidence needed to prove you are financially responsible and will be able to repay the loan. So, what score is preferred by lenders? It’s recommended to have a credit score of at least 630 to purchase a home. However, there may be special mortgage loans available, depending on your circumstances, so it’s a good idea to speak to your real estate agent to get an idea of what is expected in your area. Lower credit scores usually mean higher interest rates.
You’ll want to secure a copy of your credit report from Experian, TransUnion, and Equifax. Due to the Fair Credit Act, you can receive a free report from each agency once a year. It’s important to get all three reports because each may contain different information. Once you have the reports, look for errors and delinquent accounts. Report any errors and plan to repay past due accounts.
💰 How Much Money Should I Save to Buy a House
While your mortgage loan will cover most of the sale price of the home you purchase, you’ll still need money to cover the down payment, closing costs, and moving fees. Plan to have 20% of the asking price of the property. There may be a chance that you’ll be able to pay a smaller down payment, but it’s best to be prepared. Keep in mind that the more money you put down on the house, the less you’ll need to repay.
🙋♀️ How to Find a Real Estate Agent to Buy a Home
Why look any further than right here? We would be happy to help you navigate the home buying waters. We’re dedicated to providing clients with the highest level of communication, as we work to make your home ownership dreams a reality.
We’ll listen to your needs and choose properties that fit within your price range. When it comes to placing an offer and negotiations, we’ll be with you every step of the way. You can count on our experience and knowledge to help you have a successful transaction.
☑️ Why Mortgage Pre-Approval is Important
You’ll want to apply for a loan pre-approval as soon as possible. This pre-approval is beneficial for several reasons. First, it lets you know exactly where you need to search for a home when it comes to price range. There’s nothing as disappointing as getting your heart set on a property and finding out that it’s out of your target price range. Knowing how much you can afford saves you time and money in the end.
Another reason you’ll want a pre-approval is to show sellers that you are serious about purchasing a home. When it comes to a situation where the seller is entertaining multiple offers, your pre-approval letter may turn the tides in your favor.
📝 Creating a Wish List for Buying a Home
It’s easy to get swept away with grand ideas of everything you want in a home. Creating a wish list will help keep you focused while you are touring homes, an it will also help you be realistic when it comes to wants versus needs. This is your first home, and it may not have everything you dream of, but it can come close is you have clear expectations. Share this wish list with your real estate agent. This list helps them narrow down houses for you to view.
💲 How to Place an Offer on a House for Sale
When you find a home that checks all or most of the boxes on your wish list, it’s time to place an offer. Contact your real estate agent. You’ll want to sit down and discuss the asking price and determine if you want to meet it, come in under, or go above. Your real estate agent will help you come up with an attractive offer that gets the sellers attention.
Once your offer is placed, you’ll wait for your real estate agent to get in touch with you. Hopefully, your offer will be accepted, but be prepared in case negotiations are needed. Your real estate agent will work on your behalf. Once your offer is accepted, you are that much closer to the closing table and owning your first home.