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First Time Homebuyer? Remember these Tips


Posted: June 05, 2019 by Alan Tucker

If you’re trying to buy your first home, there are sure to be a lot of advice that you’ll receive on what to do and what not to do! That said, there are a few things that you’ll want to keep in mind that will ensure that the first time homebuying process goes smoothly! First, understand the importance of saving for the down payment on the house and how to go about doing so! Second, when applying for a mortgage on your home you should understand the importance of having you credit in order! Lastly, ensure that you stick to your budget when buying your home and making changes/improvements to said home!

 Save for your Down Payment

The down payment is an early and crucial step to not only owning your first home, but also determining how much money you’ll be spending to pay off said home in the coming years! It is suggested that your down payment be at least 20%, although this can be a hefty amount of money to pay! That said, there are certain advantages that comes with making a down payment of 20%! For example, any down payment made that is less than 20% means that you’ll owe more money after the fact, and you’ll have to pay for mortgage insurance! That said, saving that amount of money can seem daunting and difficult, so start preparing early!

Check your Credit Prior to Applying for a Mortgage

When you apply for a mortgage loan, your credit will be one of the first things that is investigated! As such, you should pause any new credit activity prior to applying for said loan, and make sure to review your credit and dispute any false or incorrect charges! Additionally, you can try to improve your credit prior to applying by paying off any outstanding debt and avoid taking out any other loans until the mortgage loan has closed! These are just a few strategies to improve your credit, but it’s a good place to start!

Stick to your Budget

Sticking to your budget can be difficult when buying a home—after all, there may be a
home that’s the perfect fit for what you want but it’s outside of your price range! However,
staying disciplined and understanding what you can afford rather than what you want to afford is key to setting yourself up for long-term success! After all, the first home that you buy is almost certainly not going to be the last home that you buy! That said, don’t be afraid to save a bit of money and skip out on a feature or two that is a want but not a need!

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