Tips For First Time Home Buyers Chelsea Herring
Shopping for your first home can be an exciting experience, but it can also become overwhelming. First time home buying mistakes are pretty common. For example, some first time home buyers fail to prepare for the closing costs, which can lead to disaster.
As a first time home buyer, it’s imperative for you to take measures that will help pave the way for a pleasant home buying experience. Read on for 6 tips that can help you buy your first home without any worries.
Pay Off Debts and Start An Emergency Fund
It doesn’t take a rocket scientist to figure out that owning a home is expensive these days. Before shopping for a new home, you should be debt-free and have an emergency fund in place.
How much of a house can you afford? Besides the purchase price, you will have to deal with property taxes and homeowner’s insurance. Make sure that your budget can cover these expenses. It’s also important to mention that you must make sure that your budget can cover home repairs.
Determine Your Purchase Price
Check Your Credit Score Having a high credit score will help you get favorable terms from a lender. Check your credit score before applying for a home loan. If your beacon score is low, you should work on it before contacting a home lender.
Save Money For A Down Payment
There’s a strong possibility that you may not be able to pay cash for your home. If this is the case, you should start saving for a down payment. Your down payment should be at least 10% of the purchase price.
The title company expects to get compensated for their services. This is the primary reason why you should save money to take care of the closing costs. In some situations, the seller will assist in the closing costs but it’s always a good idea to have something saved, just in case.
Save Money To Cover The Closing Cost
Shop For A Home And Make A Competitive Offer Now, you’re ready to look for a home. After you’ve found one that you like, make a competitive offer. If you need help finding a home that meets your standards, you can hire a real estate agent.
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