Updated: Dec 18, 2019
It can be a challenge when you are first thinking about buying a home. But with the right guidance it can be smooth sailing. Here are 5 tips to help you along the way.
1. Find a real estate professional to help you through the process: It's a good Idea to enlist the help of a professional. Your real estate agent will help you from start to finish, will answer all of your questions, connect you with the right vendors, explain all paperwork, have your best interest first and will form a long lasting relationship with you.
2. Consider your income: There are a lot of beautiful homes in every price range, so stick within your budget. This will ensure that things run smoothly and you will get a home that you can afford. Don't try to spend more than you have to and find yourself in the future going into foreclosure. Banks will look at percent to income for example 28%. This means if you earn $50,000 per year, your total monthly housing cost cannot exceed $1166 (28% of your monthly income). The banks will look at your income as well as other things. So make sure that you have a real estate professional to help you through the process.
3. Think about how much you can afford as a down payment. Many lenders want a 20% down payment for a conventional loan. There are many other loan options out there if you do not have 20%. Depending on the lender and options that best for you, there's 3.5% for FHA or $0 down for VA. Make an appointment to speak with a lender to determine what's best for you.
4. Get Pre-qualified: It's so exciting when you are buying your first home and you want to go out right away to start touring homes. It's best to get qualified first. This will help you to know what type home you would like and where you want to live. Being qualified and having your approval letter will help the process to run that much more smoother. Without being pre-qualified a seller may not look at you as a serious buyer.
5. Lock in Your Rate: A good place to start would be guaranteed Rates https://www.rate.com/home-loans They are a trusted source and can help you with many options.
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