5 Tips for First Time Home Buyers
Buying a home can be a wonderful milestone. You will have so much to do in preparation for the big day. Consider the following twelve items as a checklist to help manage your financial and emotional resources.
Saving is an important financial tool. Rainy days and sunny days alike need some financial cushioning. Begin saving for a sizable down payment, closing costs, and insurance by cutting out extras. Figure out what can be cut from your monthly and yearly budget. Begin with true extras like pumpkin spice lattes and sports tickets. Then try to see if your yearly expenses, such as vacations are still as pressing in light of waiting for your first home.
Nurture your credit score
If your credit score has not been top of mind, now is the time to be proactive. Always pay your bills on time. Credit cards help prove your financial responsibility – don’t cancel them while you’re in the home buying process. Focus on the knowledge that a higher credit score equals a lower interest rate.
A pool, a guesthouse, and a kitchen island are all amazing extras in a home; however, decide how much you can afford and are comfortable paying every month. You should not linger in a state of sacrifice in order to make your mortgage payments. Use several online calculators (www. ***.com is a reputable one) to see how much you can afford without anxiety.
Finding the best deal from a lender takes patience and quite a bit of research and the lender with the most beneficial terms may take you by surprise. Rechannel your anxieties into productivity by shopping around for the best deal. Make a list of your top choices and potential backup lenders. Nothing is wasted in the research process. Ask around for advice and recommendations.
Create a list of non-negotiable criteria
What makes the world so diverse is that not all of us want the same thing. Some only want to live in Coral Gables or Miami Beach. Others can live anywhere as long as there is a sizable yard and central air. Select three things that you cannot live without and then choose which ones you would like but are not deal breakers.
Home ownership will change your life for the best. Research all your options and think as realistically as possible. Part Two will further discuss tips for first time homebuyers.
For more information on first time home ownership, contact Suzanne Feanny for a complimentary consultation.