February 21, 2018 by realestateresource
A Guide for People Looking to Buy Their First Home
Are you fed up with living in rented homes? Landlords increase the rent every year and you also have to move from one home to another which is a very tiring process. Buying a home in your name is a good idea as it will give you a permanent address and also serves as an investment in your future. Many individuals start their house hunt in excitement but later find that buying a home is not a cakewalk. Here is a guide to make sure your endeavor is successful and hassle free.
Know your requirements
It is a great idea to know the requirements of your family before conducting a search for homes. It is better to set your priorities right before taking a step in this direction. Are you ready to bear the burden of monthly installments for the next 25-30 years? What type of house is best suited for your family’s needs? Find ans
wers to these questions before looking for houses.
Save, save, save
Just because you are ready to give the rent you are paying towards your mortgage obligations does not mean you have enough to buy a house. The purchase of a home comes with a down payment as well as closing costs, and other fees.
It is good idea to have a clear estimate in your mind and save that much money before embarking on the home buying process. It is better to save more money than you think you need to buy a house. You will be surprised how much more you need than just the down payment for the purchase of a house.
Check your credit
All lenders take a decision on your mortgage application after examining your credit report. They will also evaluate your debt to income ratio. Typical lenders look for credit scores at or above a 580. Different loan programs have different requirements. Make sure that you have a decent credit score before applying for a loan to increase your chances of approval and a better rate of interest.
Shop for mortgage loan
You need not jump at the first offer of a mortgage loan from a lender. Different banks have different mortgage products. You would do well to compare these products and choose one that is best suited to your interests and work with a lender who has local knowledge and who you feel is attentive and you can connect with. It is never a bad idea to get a lender referral from a realtor, family member, or friend.