Do a self-check. Are you ready to take this leap? Be 100% sure because it is different from just renting a condo or an apartment. There are several costs to think about such as repairs and maintenance. There are taxes and insurances too. Ask yourself – are you financially capable at the moment? Are you sure you have no existing credit?
Create a checklist. Once you reach the decision, the next step is to form a game plan. Would you like to stay in the city where all the center of activities happen or would you rather live in the countryside to enjoy fresh air and a more relaxing environment? What are the must-haves and nice-to-have in your future residence;
Follow these pointers to make sure that you do buy low, so you know how to buy a first home.
1. Make sure that buying is indeed up your alley- Consider other situations in your life and ask yourself these questions. Do you not have a stable job and that your work is looking dimmer and dimmer? Do you have a bad credit report and history? Do you have plans of moving in the next year or so? If your reply to these kinds of queries is yes to any of these questions, then purchasing your first home may not be a good move. If you feel like your work is not stable and you think you’re going out of the job soon, then consider renting instead of buying a new house.
2. Monitor your credit score- Check your credit score and make sure that you have a good credit standing and history. This means that you are always on time when you pay a debt and that you are a trustworthy and respectable debtor. Before buying that first home, make sure that you already have your cash for down payment and that you know a mortgage lender who is willing to lend you a home loan at a reasonably priced rate. You can also have your mortgage or lender brokers pre-approve your loans.
3. Consider the down payment and other solutions- When buying a home, also consider the down payment factor — many realtors advice that you need at least 20% so you can have lower monthly payments and equities. You should know that buying a house becomes easy for you when you have that cash for a down payment. You can also qualify for a loan modification program with that down payment – just in case you need it. If, for instance, you don’t have that 20% for the down payment, you don’t have to worry. You can check out other alternatives such as a government-backed loan, the loans from the Federal Housing Administration or even through the Department of Agriculture.
4. Consider the costs in buying your house- Giving that much-needed down payment is just the start. There are still other considerations. How to buy a first home also involves paying for your principal and mortgage payments, insurance, and real estate taxes. Just ensure you’ve got enough pockets to see you through for quite a while.