Buying your first home is an exciting adventure. You are embarking on a new journey and making a major investment in your future. It may feel a bit frightening at first, but with a little guidance, you will be able to take care of all the steps necessary in purchasing the right home for you and your family. Don’t wait to start preparing to buy a home; get started now so that you are ready when the right home shows up. Here’s a step-by-step home buying guide to prepare you.
Fix Your Credit
Most importantly, start by fixing your credit. Go over your credit reports from all three credit bureaus. Look for anything that might be affecting your credit score. Pay down your debts and look for new ways to build your credit. Resolving old credit issues will strengthen your credit and give you a chance to look for better financing options for a mortgage.
Start Saving for Your Home as Soon as You Can
Even if it is only a small amount from each check, put away as much as possible toward a down payment. The more you have saved for a down payment, the better your loan options will be. Most lenders want at least a 20% down payment for a traditional mortgage. While you may be able to obtain a loan with less than the normal 20%, you will still need a good chunk of cash to be competitive.
Determine Your Budget
Analyze and alter your budget annually to prepare to buy your home. The earlier you start saving for your down payment, the more you will be able to afford down the road. Remember that your budget will change with varying circumstances. You may pay off student loans or buy a new car, each of which will impact your budget and how much you can afford when buying a new home. Check your budget every few months to ensure you are on the right track. Ensure that you have adequate funds to buy a home and meet your monthly expenses.
Get Pre-Approved
Go to your bank and find out what you qualify for in terms of a mortgage. When you are ready to start house hunting, gits important to get pre-approved. Getting pre-approved can take a little time, so getting it out of the way will allow you to look at homes within your budget and make an offer quickly once you find the home you want to buy. Once the pre-approval process is completed, the fun part of finding your dream home begins!
Start Hunting
The next step is to start house hunting. Know what you are looking for in terms of size, bedrooms, baths, and land. It’s also important to find a realtor that you trust. They will be able to investigate potential properties and find those that match your needs and your budget. Stay in close communication with them so that you can respond quickly once you find a house you like.
When you decide to purchase a home for the first time, you will want to follow a few simple steps. Contact our experts at Brighton Escrow, Inc. at your earliest convenience. We can help you get the process started and keep it moving forward. Call today so you can find your dream home!
