5 tips for first time home buyers

The home buying process can be overwhelming at times, especially for first time home buyers. Questions I often get are: How much do money do I need for a down payment? What if I don’t have good credit? How do I get approved for a loan? etc… To make the process less stressful and more enjoyable, here are 5 tips you may find helpful when starting your home buying journey. 

1.      If you are planning to purchase a home within the next year or so, start saving for a down payment. The recommended down payment is 20% of the purchase price, but there are programs out there where you can put as little as 3% down. In addition, I always recommend having a little extra saved up for closing costs and for “in case of emergency” situations.

2.      Keep an eye on your credit score. Of course with a high credit score, you will likely get approved for a loan with a lower interest rate. However, there are other programs even with a lower credit score, you can still qualify for a loan. With most loans, they require a score of at least 620, but it can vary depending on what program it is.

3.      Get pre-approved for a loan. Talking to a lender, you’ll find out what options there are and what type of loan will work best for you. You can also figure out what monthly payment will be comfortable for you. Once you get pre-approved, you’ll know what price range you should be looking at and you can start looking at homes!

4.      Have an idea of what you are looking for. What city do you want to live in? How many bedrooms and bathrooms are you looking for? Do you want a single family home or townhomes/condos?  Having answers to these questions can help narrow down your home search. We can input this information into the MLS and as soon as a home goes on the market that fits your criteria, you will get an email. This way you don’t have to worry about looking online everyday to see what new homes there are, they will already be in your inbox!

5.      Have fun with it. Buying a home for the first time is a big step and a huge accomplishment! Working with the right realtor, you won’t have to stress and can focus on the fun part, which is finding your dream home.