Buying a home for the first time is invariably a daunting task. It’s no small task to find the time and money to even consider it, but once it’s all in place you want to make sure that you’ve got the best deal possible. This house is somewhere you’re going to be turning into a home, and making a mistake now will mean the repercussions are going to stick around. Breaking down the steps into manageable chunks and learning the basics of buying a home is easy, though.
Credit
Long before you’re even close to buying a home, you can start by building up your credit score. Everyone has multiple individual ratings that all factor into a “blanket” score (like a FICO score) that sellers, lenders, and brokers alike take into consideration. The better your score is, the more lenient you’ll find rates and financing options are. Building a good credit score can be as easy as paying bills on time, keeping a balance on credit cards you can pay off monthly, and managing lines of credit responsibly. It takes resolve, but you’ll thank yourself later.
Finances
The majority of the effort in buying a home stems from ensuring that funding is in place and secured long before you even start the whole process. There’s a bit more than you might realize that you need to figure out before you can determine the costs, though. Beyond the value of the house, a reasonable budget should also include incidentals (New furniture, replacing old stuff, re-stocking a fridge, etc.), escrow closing costs, moving expenses, and more. Putting aside a reasonable sum of money for the unexpected should always be in your best interests.
Of course, if you can help to apply for any outside funding or assistance for your down payment, then it’s prudent to keep them in mind. Options like Freddie/Fannie Mac mortgages, FHA loans, and VA loans can make that financing much, much more manageable. We offer many resources for determining the specifics.
Choosing Your Home
Once you’ve done your research on the financing and mortgaging you’re qualified for, physically choosing your home is viable. From here on out, your realtor and broker will be able to help you in most of the decision-making process. Before weighing out the specifics though, do the legwork, do your research, and brush up on the basics of buying a home. You don’t want to figure out how the house, neighborhood, and community will fit your needs just for today – the future is essential to consider. Will it be large enough for your family? Will any nearby developments will increase your home’s value?
Once you’ve narrowed down your locations, then it’s time to consider individual properties. Open houses are fantastic for learning what a home is like in person and getting a good “feel” for it. Ordering an inspection on a property can help quell any worries you may have. There’s no reason you shouldn’t be selective about this decision, so going the extra mile is worth it.
First Choice Mortgage
There’s so much more to the home-buying process than just finances, and we want to put your mind at ease when it comes to finances. We can offer resources, consultation, and our time to work with you to make it as easy as possible. Get in contact with us today to see how we can help!
