Sometimes, a good tip can be worth it’s weight in gold! With that in mind, here are some first time home owner tips that we hope will help you through what can be a complex real estate process.
First time home owner tips
- The earlier you save, the better. While it’s fairly typical to make a downpayment of 20 percent, putting down a little — or a lot — more will reduce your monthly mortgage payment and your interest payments, especially over the life of a 30-year loan.
- What can you realistically afford to pay for a house? Take the time to figure that out before you begin looking for a home. Remember, even after buying a home you’ll likely want to keep up your lifestyle, whether that’s traveling or just going out to dinner with friends.
- How’s your credit? If it’s not so good, take some time to make the necessary repairs to improve your credit score. The better your score, the better the interest rate on your mortgage. And, avoid opening any new credit accounts during this time if at all possible.
- First time home owners may also be entitled to federal programs such as Fannie Mae and Freddie Mac that allow you to acquire a loan with as little as 3 percent down. Some states also offer tax credits and other assistance programs. Ask your Realtor.
- Get pre-approved for your mortgage. Pre-approval tells sellers that you’re serious about buying.
- Visit multiple open house events to compare prices, home styles and neighborhoods. And, never hesitate to ask questions while visiting these properties.
- Think ahead and buy a house that will fit your needs now and in the future. Unless absolutely necessary, you really don’t want to buy and then have to buy again in a couple of years.
- Make a strong first offer. There’s a lot of competition out there and houses, in many areas, are flying off the market. Don’t make a low offer that you’ll later regret.
These are just a few first time home owner tips, and we have a lot more! For more information and tips for both buyers and sellers, please contact The Olear Team today.