A STEP-BY-STEP PLAN
Are you preparing to buy your first home? Here’s
a walk-through to help with your plans. First, get your credit report
and check for errors that can cause loan complications. With a low
score, you may have to pay a higher interest rate or could even be
turned down by the lender. It is best to work on your rating before
applying. You can obtain free copies of your credit report from the
three major bureaus online.
FOR FIRST HOMEBUYERS
Start saving money by reducing expenses as much as possible. Do not close any accounts, because you need you credit rating. You should have at least 5 percent down payment.. Ten percent will provide more financing options. Remember that you need money left over for the first several months’ expenses. Start doing your homework and study the different loan options. Calculate the price of a house you can afford, including all extra costs. Consider buying a home that is less than your maximum.
Talk to several lenders and be pre-approved for a mortgage, which sellers appreciate. Explore different neighborhoods and look at the real estate advertisements. Very important, find a real estate agent that understands the special needs of first-homebuyers and will go step-by-step through the process. Enjoy your accomplishment. It is a very special time.