7 FIRST TIME HOME BUYER TIPS
DETERMINE YOUR BUDGET
After deciding to begin your home search journey the next step is to determine your budget. There are several recurring costs associated with being a homeowner. It is important to plan for home repairs, property taxes, HOA fees, and other monthly expenses accordingly. Be realistic with your budget. It is not wise to purchase a home above your financial means.
SPEAK WITH YOUR REALTOR
An experienced Realtor will be able to provide you with vital insight and information about owning a home that can help you make your dreams a reality. There are many opportunities for first time home buyers. For example, FHA loans help lower your down payment significantly and are only offered to first time buyers. Your Realtor may even be able to guide you to programs that provide other forms of down payment assistance.
The cost of home is not the only expense buyers face when purchasing a property. Closing costs are also a part of the transaction and are often overlooked by first time buyers. Fees for the title company, recording of the deed and mortgage are all costs expected to be paid by the buyer at closing. Be sure to thoroughly review and discuss these costs with your Realtor before committing to a purchase. Understand that a smart home buyer will also consider inspection costs and home repair costs as well.
SET YOUR GOAL
Saving for a home takes time. Create a savings schedule and timeline to get you to your home buying goal efficiently. Strive to meet your savings deadlines and stick to your plan.
IMPROVE YOUR CREDIT
In order to qualify for the lowest mortgage rates possible, it is important to have great credit. While you are saving for a home, be sure to pay off any credit card debt, auto, school or personal loans. Be sure that you are not excessively spending right before and during going under contract as loan officers look at your spending history to help determine your eligibility.
Be sure to commit to adding to your down payment savings as often as possible. It may even be a good idea to create a separate savings account that automatically drafts small amounts from your checking account every month. This way you do not have to consciously think about adding to your savings.
SAVE, SAVE, SAVE
Homes can be very expensive. Save as much as possible. Commit yourself to a timeline and during this time try to cut back on excessive spending. Analyze how you are spending your money and determine in what ways you could save more by limiting the number of times you go out to eat, go shopping or other non-essential activities. It may be difficult at first, but in the end it will all be worth it.
To learn more about ways to save for your first home, Call us, the Connie Cabral Group, today at 305.776.0899 or send an email to [email protected]
Our team of certified luxury specialists go above and beyond for our clients – from first contact to after closing.