Thinking Of Becoming A First-Time Buyer? Follow These Steps
If you are a renter who is considering taking the next step of buying a house or condo, thinking about making a purchase that significant can be a scary thought. However, there are certain steps you can take to make the process a little easier. Following is a list of things to start doing well before you make your first offer on a home.
The first step to take when you know that you’ll be purchasing a home is to start saving for a down payment. A down payment is a percentage of your home’s purchase price that you pay up front when you close your home loan. Lenders look at this down payment amount as your investment in the home, so the higher amount you can put down on the home, the safer the bank feels about giving you a loan. In addition, if you put down a larger amount upfront, your monthly payments will be much more affordable.
One of the best things you can do to help put you in position to buy a house is to make sure your credit score is in good shape. The factor that most heavily influences your mortgage rate is your credit score. The higher your credit score, the lower the interest rate. Because purchasing a home is such a big expense, the interest rate percentage you pay makes a significant difference in your monthly expenses, so it is essential to try and get a favorable interest rate on the home you are buying.
Another beneficial step for you to consider when you’re getting close to purchasing a home is to narrow down the neighborhoods that you want to live in. Potential buyers should familiarize themselves with neighborhoods and explore factors such as crime, school quality, home appreciation, and the lifestyle of each potential neighborhood.
Taking some of these steps listed above can go a long way toward helping you prepare to transition from a renter to a first-time buyer, and it is never too early to start. Even if you are not ready to purchase a home, it is often a good idea to reach out to a quality real estate agent. Agents navigate these issues consistently, and they are generally happy to give you free advice in hopes of assisting you when the time is right to buy a home. So, whether you need tips on how to improve your credit score or want expert advice on market trends for different neighborhoods, feel free to reach out to one of our agents at Ewing & Clark.