You are ready for the biggest purchase in your lifetime! You have been a responsible person settling credit card debt and managing your finances. And now it’s time! However, before you jump into the big buy here are some first time home buyer tips to consider.
Don’t take on more debt than you can afford for a house.
First Time Home Buyer Tips
Affordability!
Buying a home can be overwhelming. Swiping through pictures of many different houses in the market can easily change your focus and priorities. While you can get carried away with the big yard and the pool outside, make sure you are 100% in knowing if this is really something you can afford! Don’t just look at the value of the house. Also look at what follows your big purchase. Closing costs, maintenance, move-in costs, immediate repairs are some of the costs that can add up! Use our How Much House Can You Afford calculator to get an idea.
Secure Your Down Payment
Your down payment is a crucial component of your mortgage term. Analyze your finances to know how much exactly you can afford as a down payment. If you put less money down, this means you will be borrowing more. This means a higher monthly payment and a tighter budget and a bigger effort on eliminating debt. Ideally, you should be prepared for a 20% down payment.
Keep Your Credit in Check!
Your credit rating is crucial for securing a good rate on your mortgage. Make sure you check your credit before you start searching for a home. Take the necessary steps to improve your credit beforehand.
Research, Research, Research!
Knowing your life goals is a crucial part when it comes to buying a home. Will this be the one home you will spend the rest of your life in? Will you be raising your family in this neighborhood? How important is it for you to have good schools in your neighborhood? What about safety and public transportation? All of these items must be thoroughly researched before you make your decision.
If you’re struggling to pay off debt, ACCC can help. Schedule a free credit counseling session with us today.
