Looking forward to buying your dream home this year? If so, then you start laying the foundation for moving into a brand new space with your family.
Buying a house in the US today is no easy task. You’ve to look at the right places and wait for the right property to be listed, and even after that, you need to place the best bid to grab the keys to the front door. Given the hyper-competitive nature of the housing market, you’d be better off starting as early as you can.
But how do you do that?
You should be aware of some basic principles before going on a home-buying spree. With thorough preparation and an eye out for the right opportunity, you can buy the best property to move in and call ‘home sweet home.’
- Understand the Home Buying Process
Before you put pen to paper in buying your first home, try to look for sources that educate you as a homeowner. Many government agencies and housing agencies offer educational programs and courses to first-time homebuyers to get acquainted with the process and liabilities of a homeowner.
Alternatively, you can also look at online blogs posted by realtors and property brokers to learn more about the nuances of moving in. Try to learn as much as you can, as educating yourself as a first-time homeowner will help you arrive at better decisions in closing the perfect deal for you and your family.
Buying a home is a big decision requiring significant investment, and the real estate market has grown excessively competitive in the past few years. The best-informed consumers are more likely to get the best deals around. Knowing about all sides of the coin is especially useful if you’re availing a mortgage to buy housing property.
Moreover, homebuyer education may also make you eligible for various programs which assist first-time buyers in purchasing the home they’ve always dreamt of.
- Improve your Credit History
Credit history reflects your ability to pay back loans on time. Needless to say, your credit history will play a huge role in securing a mortgage that offers you the best interest rates with the terms in your favor. The better your credit score is, the better your mortgage loan will be. With a good record of paying your dues on time, you can also enjoy an affordable interest rate on your mortgage loan. Over the loan’s lifetime, a lower interest rate translates into thousands of dollars of savings.
The Fair Credit Reporting Act allows you to get a free and accurate report of your credit score once every 12 months. The three major credit bureaus in the country are Experian, TransUnion, and Equifax. You’re entitled to get a free report from each of these agencies once a year. If you’re planning on applying for a mortgage for a new home, it’s advisable to get a copy of your credit report and review all the information inside to ensure that all the entries in your report are correct and updated. There can also be minor errors that may be detrimental to your credit score, so it’s wise to regularly keep tabs on your credit score report.
- Figure-in your Budget
Your budget is a primary factor for consideration before you venture out to buy your first home. Many first-time homebuyers make the mistake of availing a hefty loan amount they don’t have the pocket for. You must ensure that the mortgage amount is a cost you can easily pay in the long term.
Therefore, before venturing into any neighborhood or even looking for deals, set a budget you’re comfortable with. Drawing the line on your budget will help you to make better purchasing decisions, especially on avenues where the competition is stiff.
Remember that mortgage repayment isn’t the only cost you’ll have to bear here—factor in expenses like taxes, home insurance, HOA fee, and other utility costs. Thus, you’d want to select a mortgage amount that settles well inside your budget while also leaving room for these miscellaneous expenses.
- Secure the Down Payment
A challenging prospect for homebuyers is to have enough cash to secure the downpayment and closing costs upfront. So you don’t want to stare at the barrel of the gun at the last moment; you need to plan it. Ideally, you should assign 12-20% of your overall budget for a down payment to get a loan with favorable terms and interest rates.
Once you’ve decided on a budget, try and figure out the amount of downpayment you’d need to make to secure the loan. By knowing the exact down payment amount for your mortgage loan, you can set that sum aside for upfront payments.
- Select the Right Professionals
Having the right professionals on your house-hunting team can be a major benefit, especially for first-time owners. Start with contacting your local real estate agent, who can help you find the best mortgage and property deals.
You can also reach out to a housing expert or advisor who can lay out the best financing options for your budget. A real estate agent can also help you find contractors, insurance agents, attorneys, etc. With the best possible experts around you, you can make better purchasing decisions.
Looking to Buy your First Dream Home?
If you’re looking to buy your first home in the Temecula region, then we can help. Sean Murray broker is experienced in serving the real estate market of Temecula and can help you find the best property and mortgage deals for your first home.
I have a lot of clients in the city with a long-term relationship with handling their property needs.
Buying your first home should seem like a dream, and Sean Murray broker can help you realize the dream with a smooth buying process with you at your convenience while being at the helm. Contact now to get the best possible housing deals and assistance in Temecula.