When a first-time homebuyer is ready to purchase their first home, it can be easy to get really excited but also very overwhelmed. Don’t get carried away—these five questions will help you figure out everything you need to know to buy your first home.
What’s my credit score?
Finding out how good (or bad) your credit score is will be the very first step in buying a home. Bad credit scores can not only make you pay a lot more interest over the life of the loan, but you could also be denied outright from a home loan if your credit is particularly bad.
How much home can I afford?
Many first time homebuyers will feel giddy when they find out the amount of loan they have been pre-approved for. Let it be known that the amount of home loan you’ve been offered and what you can actually afford are two entirely different things. Develop your monthly budget and figure out what you can comfortably afford. Don’t forget to factor in PMI (if needed), property taxes and a maintenance fund.
Which mortgage lender should I choose?
There are many things that go into choosing a mortgage lender besides which one offers the lowest rate. Your mortgage lender will be with you for the life of your loan (in many cases, 15 or even 30 years!), you want to make sure you get along with them! Finding a good reliable mortgage lender, like Heritage Home Loan, will help make your mortgage experience a good one.
What kind of home loan should I choose?
There are many different kinds of home loans out there. Your mortgage lender should be able to help you find the one that will work the best for your situation. But make sure you do your own research on the side.
What do I really need in my first home?
Too many homebuyers focus on their wants and not their needs. Let go of some of your pre-conceived notions of home buying. Remember that paint can always be replaced and furniture can always be rearranged. For many first-time homebuyers, a fixer upper is always a preferred option to keep initial costs low. Separate your wants from your needs in order to find a house that fits within your price range.