4 First Time Home Buyer Tips
Buying your first home is a very exciting adventure! At some point, I think we all fantasize about viewing gorgeous homes, beautiful yards, and amazing neighborhoods in which to live.
But before you can get on with the Mc Mansion touring, there are a few things that every first time home buyer should do first. Here are 4 great first time home buyer tips:
First Time Home Buyer Tip # 1 – Research
Buying a house is a big under taking, whether you’ve done before or not. If this is your first house purchase, then you really have a lot to learn, and waiting to begin the process of purchasing will be too late.
Start by reading up on the subject. There are several good books and eBooks on the subject. Check out amazon.com or local library to find valuable resources.
Miss school? There are a number of great home buying classes offer through HUD and local county governments. Check out HUD’s site for more details.
First Time Home Buyer Tip # 2 – Find out how much you can afford
Want to know what a potential mortgage payment might be? Use this free mortgage calculator to work payment scenarios.
If you really want to get serious about knowing the exact amount that you’ll likely qualify for – you need to get a real mortgage pre-approval. Through this process, you’ll discover your true buying power (how much you will be able to buy) and if there are any credit issues that might pose a problem when it comes time to close.
First Time Home Buyer Tip # 3 – Find out what your likely closing costs will be
Closing costs (and escrow amounts) are the fees, taxes, and interest associated with closing the transaction.
Your Realtor or mortgage loan officer should be able to give you a good ballpark figure, but to really get an accurate number – you’ll need to know what county or zip code you’ll be buying in, the loan amount and purchase price, and the loan program to be used. Again, get yourself pre-approved first…
First Time Home Buyer Tip # 4 – Get your financial documents together
In order to qualify for a mortgage, you’ll have to show that you have the credit, income, and assets to make the deal work.
Your mortgage loan officer will typically collect the following from you:
- your most recent 30 days of pay stubs
- w-2s for the last two years (or tax returns if self employed)
- your most recent two months of bank statements for checking, savings, etc..
Having this information ready to go will speed up the process!
Buying a new home is an involved process that requires a lot of work to be done. If you take the time to follow these first time home buyer tips…you’ll have a much easier time and enjoy the process a lot more.
Are you in the market for a new home? Would you like some help with qualifying? Please let me know how I can help.