Buying that first home is a giant milestone in anyone’s life and it’s easy to get carried away with excitement. That’s why it’s important to relax and consider a few guidelines before you make your big decision.
1. Make sure the time is right
Do some searching to find the reason behind your motivation to buy a home. Is it an investment or simply just time to settle down? Either way, have a plan going into it. Homes require a large amount of time and energy to maintain so make sure that you are ready for that commitment.
2. Check your credit score and get a report
It’s easy to get a free credit report online and the PorchLight Real Estate agents suggest you do so before considering a new home buy. Be sure to start early, it may take time to fix any issues on the report.
3. Take care of any weakness in your credit history
It’s important that you have a good credit history so be sure to pay off any outstanding debts you may have. If you don’t have much credit history, now would be a good time to start building some credibility. Try to avoid applying for a new line of credit if you plan to buy a house right away. Mortgage lenders may view this as a red flag.
4. Start Saving
Any home buyer knows that a down payment is needed on the purchase price. The more savings you have, the better your mortgage terms can be. Don’t just save enough for the down payment though. The PorchLight Real Estate Team suggests saving enough for the down payment plus closing costs. Closing costs vary on average but a good rule of thumb is to expect it to be anywhere from two to five percent of the purchase price.
5. Get educated
Before you even start browsing for houses, make sure to educate yourself on the buying process. Be sure you know what to expect, and what you want to avoid. Check out real estate blogs (like the PorchLight Real Estate Blog) to find any relevant information that will help.