Buying a home can be a daunting task, especially for first-time buyers. Below are ten helpful tips to keep you on track during your homebuying journey.
1. Get Pre-approved
This will help you determine how much you qualify to borrow and what you’re comfortable paying.
2. Check your credit
Even if you have blemishes on your credit, you may still be able to qualify for a loan. Your loan officer can educate you on the many factors involved.*
3. Determine your down payment
Requirements vary depending on the type of loan, loan amount, and available down payment assistance programs.
4. Save for closing costs
They may include, but are not limited to, title policy insurance, mortgage insurance, fire/flood/homeowners insurance, recording fees and loan origination fees.
5. Explore ways to lower your rate
You may be able to pay points (fee charged by a lender; one point is equal to 1% of the loan amount) at the beginning of the loan to lower the interest rate charged.
6. Decide between fixed or adjustable
Depending on your short – and long-term goals, you may wish to take advantage of a fixed-rate loan or one that adjusts periodically over time.
7. Consider conventional and government loans
While conventional loads may feature fixed or adjustable interest rates, FHA, VA and USDA loans typically involve a fixed rate.
8. Take advantage of first-time homebuyer programs
Ask your mortgage expert about options that are customized for those who have not previously owned a home.
9. Factor in mortgage insurance
Home loans with a down payment of less that 20% will most likely require mortgage insurance.
10. Attend first-time homebuyer counseling
Learn about selecting a home, realtor services, homeownership responsibilities, saving for a down payment and other essential elements.
This blog is brought to you by Guaranteed Rate – Chris Carr Team
*Guaranteed Rate does not provide credit counseling or credit repair services
Applicant subject to credit and underwriting approval. Not all applicants will be approved for fi-nancing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Guaranteed Rate for current rates and for more information.
Guaranteed Rate is a private corporation organized under the laws of the State of Delaware. Is has no affiliation with the US Department of Housing and Urban Development, the US Department of Veter-ans Affairs, the US Department of Agriculture or any other government agency.