Buying your first home is exciting! And you want to make sure the process goes as smoothly as possible. A successful home buying experience is all about paying attention to the details. No worries, you’ve come to the right page. In this post, we will discuss crucial tips that can help you with your first-ever home buying experience:
7 Tips You Should Know Before Buying a New Home
- Save Now. Saving early for a home is important because there are some things you need to pay upfront that you have to be ready for. One of these is the down payment, which will be based on the mortgage type you qualify for and your lender. Next, you have to pay for the closing costs upfront, which are fees and expenses that finalize the mortgage. In some cases, you can ask the seller to shoulder a portion of the closing costs. Finally, move-in expenses are one of the biggest expenses you need to pay upfront when buying a home. This is because you will use the money for any home repairs, upgrades, and furnishings you will need.
- Only Choose What You Can Afford. Know how much you can afford on a house before you start looking around. You can use a home affordability calculator that can set a price range based on your current finances. This way, you’ll have a general idea before you take it up to the lender.
- Strengthen your Credit Score. Your credit score plays a significant role in your mortgage application process. So, as early as now, check it and make the necessary improvements. Some of the most effective ways to strengthen your credit score are paying your bills on time and keeping your credit card balances as low as possible. Make sure to keep your existing credit cards open, and finally, track your credit score.
- Explore Your Options. There are various mortgages available for you, so it only makes sense that you explore all of them. Don’t limit yourself to only one lender and mortgage type. You can find others with better rates!
- Compare Rates and Fees. One of the best things about exploring your options is that you can compare rates and fees. Request for loan estimates from multiple lenders and compare them.
- Get a Pre-Approval. A pre-approval is a lender’s offer to loan you a specific amount. However, this isn’t a guarantee that you’ll get the loan, but it will make you look serious in your home buying journey to sellers and real estate agents. Moreover, a pre-approval will give you an edge over other shoppers who haven’t gotten one yet. Remember, only apply for this when you’re ready to start the homebuying process.
- Choose the Right Real Estate Agent. A good real estate agent you’re comfortable with makes a lot of difference. With so many agents out there, it can be overwhelming. Make the process a lot easier by getting agent referrals from recent home buyers. Interview a few agents, request references, and compare.
Now, you’re ready to start the homebuying process! All you need is to keep in mind these tips and get the right people to help you out.
Apply For a Home Loan at Desert Springs Mortgage Today!
Ready for a home of your own? Desert Springs Mortgage caters to first-time home buyers in Phoenix. We are a full-service mortgage brokerage focused on the purchase market through realtor partnerships and outstanding customer service. Contact us at (623) 432-1309.