How To Prepare Financially For Buying Your First Home

You just got married and you’re looking for the perfect new home to start your family in. You’ve never bought a house before so what can you expect? Buying your first home is a big deal. It can be an exciting time in your life, but it can also be overwhelming. Buying a new home can come with a lot stress if you are not prepared financially. Here’s a guide to help you make one of the biggest purchases of your life.

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How To Be Prepared

The best thing to do before buying a new home is to prepare financially. There are many things you need to consider in order to navigate through the complicated and stressful home-buying process.

First you need to determine how much you can afford. This means that you should only spend what you can afford today. Treat your home as an investment.

Learn how mortgage rates work. Compare current mortgage rates and get good estimates from a few lenders on what your rate and costs would be.

Start saving money for a down payment. Having a down payment of up to 20% of the home you want to buy is almost a necessity today. Not only will you need a down payment, but also most mortgage lenders like to see that you have at least six month’s worth of mortgage payments on hand.

Make sure both buyers’ credit is in good shape. If you’re buying a new home with your spouse, you’ll both need good credit to qualify for the mortgage. If one of you has bad credit, you need to be prepared to buy the home with only one borrower on the loan. So, make sure to check your credit score and take the steps necessary to improve your credit if it needs it.

Take your time. Buying a home is a huge decision, so make sure you’re ready. Its better to buy a home when you are financially prepared, and not just because housing prices are low.

Following these guidelines will ensure that your experience as a first time homebuyer is a pleasant one. By choosing Home Point Financial Corporation for your lending needs, you can rest assured that this process will be stress-free. Schedule a consultation with us today.