Congratulations, you have decided it’s time to take the leap to buy your first home. Begin by making sure you are ready will all the information you need to make good choices. Purchasing a home is one of the largest items most people will buy in their lifetime. Because it’s the first time you’ve purchased a home, you may not know what to expect, so here is a checklist to help you get started.
- Request at Credit Report
The credit score of homebuyers is one of the most important factors that will affect your loan qualification. If you aren’t consistently monitoring your credit score, then request your credit score earlier than you plan to purchase a home. Even if you pay your debts in a timely fashion, you can still have a poor score. Overusing credit and requesting additional lines too frequently will negatively impact your score. It takes some time to repair any damage that may be on your report, so start as soon as you are seriously in the market to secure a home loan.
- Get Financially Organized
Buying a home is a very involved process. There are many steps in this process that will require documentation to prove your income and financial history. You will need to have documents like bank statements and W2s handy. Once you are in the market to purchase a home, start putting these documents in a convenient location that is readily accessible so you will not be slowed down once you get started.
- Know your Qualifications before you Get Started
The Internet is full of calculators that will help you determine how much house you can afford with your current budget. It will also give you an idea of how each size down payment will impact your monthly mortgage. Homebuyers should have an idea of what they can afford before speaking with a realtor or lender. You don’t want to be surprised if your realtor tells you your dream home is out of your price range.
- Determine an Affordable Down Payment
Hopefully, if you are in the market to purchase a home you have already accumulated a tidy nest egg to deposit as down payment. If you have not yet saved or find that your savings are lacking for the size home, you plan to purchase there may still be hope. Many states have home partnership programs that with federal assistance offer grants to homebuyers to create opportunities for home ownership. Speak with your realtor or lender to research these programs further to find out if you qualify.