Purchasing your first home is an exciting time in life. A new home to settle into offers a new spark for life. You will have something of your own, and the joys of “nesting” are numerous.
The main thing you should understand about the home-buying process is that it is a process. You likely won’t be moving into your new home next week. Read through a brief summary, featuring some of the most important things first-time homebuyers should know about what is to come.
Figure out where you’re going
The first thing you will want to do before purchasing a home is to figure out the general area in which you hope to relocate. Choosing an area will help you get a firmer grasp on pricing ranges. For instance, finding a home for sale in Scottsdale, Arizona will cost you somewhere in the range of $400,000-500,000.
The median price for purchasing a home in nearby Phoenix, Arizona is only $240,000. Center your research around what you’re able to pay, the needs of your family, the job market in the area, and other vital variables.
Get a grasp on your credit
You will need a credit score of at least 600 to purchase a home. Pushing your score higher will get you better chances at nicer homes. Look into your credit history, and familiarize yourself with everything listed.
If there are items on your credit that are not of your doing, you have the right to contest their existence. Otherwise, work to either consolidate or simply pay down the debts listed, so your score will rise.
Determine how much you can really afford
It’s a good time to get a good look at your finances. Determine what you can truly afford to pay on your mortgage payment each month.
The best way would be to try the payment out as a savings standard for the down payment on your new home. If you can save $1,500 a month, then you will be fine paying a house payment in that range.
Start saving money
You will need a substantial amount of money for a down payment on your new home. The typical range of a good down payment is 10 to 20 percent of the total cost of the property. If you’re purchasing a home for $400,000, you’ll want to have at least $40,000 for a down payment.
A pre-approval letter for your home loan is the best way to show sellers that you’ve got everything under control and that you are serious about the buy. Get a pre-approval letter to finally get a number to use as a range for your purchase.
Start vetting homes for purchase
Once you’ve got all these proverbial ducks in a row, it’s time to truly start looking for a home.