6 Tips for First-time Home Buyers
Looking to purchase your first home? Here are 6 tips for first-time homebuyers:
Start saving early. Here are the main costs to consider when saving for a home:
Down payment: Your down payment requirement will depend on the type of mortgage you choose and the lender.
Closing costs: These are the fees and expenses you pay to finalize your mortgage.
Move-in expenses: You’ll need some cash after the home purchase. Set some money aside for immediate home repairs, upgrades, and furnishings.
2. Decide how much home you can afford. Figure out how much you can safely spend on a house before starting to shop.
3. Check and strengthen your credit. Your credit score will determine whether you qualify for a mortgage and affect the interest rate lenders will offer.
4. Explore mortgage options. A variety of mortgages are available with varying down payment and eligibility requirements.
5. Research a first-time homebuyer assistance program.
6. Get pre-approval. A mortgage preapproval is a lender’s offer to loan you a certain amount under specific terms. Having a preapproval letter shows home sellers and real estate agents that you’re a serious buyer, and can give you an edge over home shoppers who haven’t taken this step yet.