Try out these suggestions to help you buy your first home as a couple.
Buying your first home can be daunting, especially when everyone is worried about the unstable housing market and rising interest and mortgage rates. However, with careful planning and realistic expectations, couples looking to buy their first home can have success. Here are some of the things you should do to help you buy your first home.
Build Up Your Credit
Having a high credit score can help prospective homeowners qualify for a mortgage and a low interest rate on their first home. If you do not have credit established, the best way to start building is by opening credit cards. By paying off your credit card bills in full every month, you can establish a strong credit rating for yourself.
Pay Off Debt
When saving for a home, it’s important to understand that any debts that you have will be counted against the amount of money you can borrow. Lenders will review your debt ratio (proportion of debts to assets) and if it is too high, then you may not be approved for a loan. So, if you still have outstanding debts, it’s a smart idea to start paying them off in earnest before attempting to begin the house buying process.
Have a Contingency
While you will obviously need to save for a home down payment, you should also save at least $10,000 for any soft or unexpected expenses that you might encounter. For instance, you will need to have money saved for things such as moving costs, utilities, furnishings, repairs, insurance, maintenance, and so on.
Try out these suggestions to prepare you to buy your first home. Want more advice regarding the home buying process in the Hermosa Beach area? Here’s a tip; contact the friendly team at Brighton Escrow to ensure that you get the dedicated, top-tier escrow service that you deserve. We are ready to offer the assistance that you need today.