A home is likely the largest investment you’ll ever make. Based on the magnitude of the purchase, the home buying process can be exciting, challenging and even a little stressful. We know what a big decision you have to make, especially for first time home buyers, so we’ve created a list of 10 tips to help you find and secure your dream home.
- Discuss the decision to purchase a house with someone you trust. Your family or friends can help you decide if you are emotionally and mentally ready to invest in a new home.
- Create a list of what you want and need in a home. What kind of community you want to live in? How close you need to be to your workplace? Do you have children or do you plan to have children? These are all factors you need to consider.
- Examine your budget to determine whether you are financially ready for a mortgage and the other costs associated with homeownership.
- Check your credit report for any negative marks or outstanding debt. A bad credit report can saddle you with higher interest rates and larger down payments. It can also prevent you from getting mortgage approval.
- Prepare proof of your employment, stability, and longevity.
- Calculate your debt-to-income ratio. This is crucial in understanding your financial stability. A high ratio is a sign that you are financially unfit to buy a house
- Find a local lender. By getting pre-approval, you can gauge your spending limit. It also makes you more attractive as a buyer.
- Consider costs outside of home purchase price. Up-front costs can easily add up, and down payments, closing costs and home inspections require immediate financial investment.
- Make sure to address home insurance options. Home insurance is easily overlooked by first time home buyers, and it can lead to inflated rates. A reliable insurance agent can help you get the best rate for your policy.
- Once you have been approved for a mortgage, you may want to enlist the help a real estate agent. A good real estate agent can help you find a house that fits your both your budget and preferences
First time home buying is an emotionally and financially trying time in your life. In order to make sure your home buying experience is stress-free, you should make sure you approach your home search in an informed and knowledgeable manner. At Horizon Bank, we know the importance of home ownership and want to help you purchase the home of your dreams. Set up a meeting with one of our qualified lenders today.