4 Goals That Will Help You Buy Your First Home Sooner

Buying a home is both exciting and challenging as you shop for the right property.

However, you will need to get a few things in order before making a purchase offer on your dream house.

Take care of these priorities to expedite the purchase of your first home.

Reduce Credit Card Debt

Pay off all your credit card balances if possible. If not, pay off the ones you can afford to eliminate, and start applying that monthly payment to the remaining credit card balances.

Although it doesn’t hurt to have a certain amount of consumer debt, mortgage lenders will look at your income-to-debt ratio to see if you can afford a house payment.

Low debt increases your chances of being approved for a mortgage loan at lower interest and better terms.

Save for a Down Payment

Set aside in a savings account as much as your budget will allow for a down payment on your first home purchase.

Depending on your credit rating and income, you may be asked to pay between ten to twenty percent down on the property you decide to buy.

Remember that you will also have closing costs to cover along with the cost of moving, buying some new furnishings like window blinds, and other expenses, so save as much as possible.

Clean Up Your Credit Score

Check your credit score from the three leading credit monitoring agencies: Experian, Equifax, and TransUnion.

There are others available as well, but these three are widely used and collect comprehensive debt data on consumers.

Compare your credit scores from each report, and correct any discrepancies by contacting the agency.

To prepare for buying a home, you will want to raise your credit score as high as possible, preferably 700 or higher.

Sometimes, lower scores will be considered for mortgage loans, depending on other factors.

Compare Available Houses

Look for the best deal when buying a home. Work with a real estate agent who knows the area where you want to live and understands what you want in a home.

The realtor should also be able to show you several homes with similar characteristics to give you a choice of the one you prefer.

The agent can provide information about the neighborhood, schools, and local businesses to help you make an informed purchasing decision.

Take time to prepare for your first home purchase, so you can get the best house and mortgage terms. You’ll be glad you did.

Tags: Buy Your First Home, real estate agent, Your First Home

Category: Housing