First Time Home Buyer
Are you prepared to buy your first home?
Purchasing your first home can be scary, exciting, and confusing all at once. Determining if you are financially ready to buy a house is important, but knowing whether you are mentally prepared is crucial too. There is a lot of maintenance and financial responsibility that goes hand-in-hand with buying and owning a home. Luckily, we’ve put together a guide to help you organize your thoughts, and ensure you are truly prepared for the undertaking that is buying your first house.
Check Credit and Pay Off Debts
If possible, attempt to pay off small loans to save more money for a down payment. Don’t think you have to pay off all your debts though. Without a line of credit, the bank may actually refuse to approve you for a loan. Similarly, check your credit to ensure your score is good.
Research Home Loans
There are several types of loans available to first-time home buyers. You will want to research these and determine if you qualify for any. The most popular include conventional loans, FHA loans, VA loans, and USDA loans.
Determine What You Can Afford
Determining what you can afford is one of the first steps in the home buying process. For this, you should speak with a lender and become pre-approved for a loan. A loan officer will consider all your bills and how much you make annually, and then pre-approve you for a home loan.