7 Crucial Tips for First-time Homebuyers

By Cyndi & Bob Elders

If you’ve ever wanted to own your own home, this is an excellent time to take the next step. Interest rates are low and inventory is high, creating a buyers market. The home buying process may see intimidating, but with the following tips and some careful research, you can have a very positive experience finding and purchasing your first home.

1. Check your credit rating - Your credit score can have one of the biggest impacts on mortgage loan approval and the interest rate. Request a free credit report from any of the three credit bureaus: Equifax, TransUnion or Experian. Straighten out any errors before it's too late.

2. Determine a monthly budget - Factor in down payment and mortgage payment.

3. Save as much as you can – It’s not only important to save money for the down payment and closing costs, but it’s important to consider some of the other costs of owning a home such as decorating, repairs and maintenance. Many mortgage lenders require that first-time home buyers have at least three to six months of reserves in their possession to cover any additional expenses.

4.Choose a REALTOR® that you trust and understands your needs

5. Find a mortgage broker or lender – As you begin to prepare for the home buying process, start looking for a mortgage broker or lender that you feel you can trust.

It may seem easier to go with the first person that you speak with, but it is important to shop around. Ask your REALTOR®, friends and family for recommendations.

6. Get Pre-qualified – Contact you mortgage loan officer to obtain a pre-approval. Your loan officer will review your credit history and financial situation to determine the maximum loan amount/monthly payment for which you may be able to qualify. A pre-approval letter will give both you and the seller more confidence when you make an offer on their home.

7. Always ask questions – Knowledge is power and you will have trained professionals on your side to answer any questions that you have. Your realtor can walk you through the home buying process and your loan officer can help with any questions that you have regarding the financial process.

If you keep all of the above tips in mind, you are sure to simplify the buying process. With proper research and diligence, the dream of becoming a homeowner is within your grasp.