First-Time Home Buying: Can You Do It?
Can you go about buying a home for the first time? Well, the answer is a big yes. And this article is here to help you to proceed with the process with ease. Before anything else, first, you have to figure out and check if you are ready for mortgage, as well as other things you have to prepare for you to kick start the home buying process.
It is not a secret that purchasing home is a seriously big deal.
Most of the time, people end up rushing to home ownership since they feel like this is a sign of financial responsibility and adulthood.
However, remember that a big commitment is involved in owning a house. This is not guaranteed to be a good investment, and this comes with a truckload of work. And last, but certainly not the least, there are a lot of people who own houses only for their finances to be a total mess.
Owning a house could be considered as a smart and long term move yet you have to know first what you are getting into.
Having said this, since you are reading this article, chances are you will still purchase a house anyway. This is also fine. So, here, you can find a quick guide for buying your first ever home for you to know what you have to think about and deal with.
You will Need Funds
This is not about the use of a credit card. The down payment you make must be in the form of verified funds. Verified funds refer to the form of payment which can be tracked. When you have more funds put aside for the down payment, this often results to lower mortgage payments every month.
One more reason to put down more funds from the get go is the possibility of foregoing the need to buy a mortgage insurance. This is one less expense you have to worry about. The minimum amount of down payment to get rid of mortgage insurance is 20%.
Find a Loan Officer
The next step is for you to find and get in touch with a loan officer in your local area. As stated above, you will need to make a down payment. It will be easier for you to figure out the amount you need when there is a loan office by your side to guide you. The loan officer is going to help you in calculating the amount you can afford in monthly payment to start your journey to buying a home.
Your Credit Score is a Must
The credit score you’ve got plays a crucial role in the home buying process. Your ability of controlling your debt reveals how well you handle loans, and this is what lenders look into. Your credit score is also among the first financial aspects that lenders review. This credit score will help identify if you can really afford the mortgage since to some degree, this shows how responsible you are when it comes to money.