Preparing to Purchase Your First Home

Buying a home can often be quite intimidating, even if you have already purchased a home in the past. When looking to purchase a home, it’s about a lot more than simply finding a home, writing out a check and moving your things in. There are a number of things that you can do to help prepare yourself and your finances to make sure you get the home you want at the right time.

Paying Off Smaller Debts

Depending on your credit score, your mortgage amount is going to vary, as well as your interest rate and the amount of your payments every month. You want to address any old debts and get them off your credit report. This is going to help increase your credit score, while decreasing your interest rate and payments.

Look at Your Credit Score

Once you have some things cleared up on your credit report, you need to look at your score. The lender will give you an idea where you want your score to be. Scores range from 300-850, but you want to aim for around 700. The higher the score, the better it is. High scores get you lower payments and interest rates.

Pre-Approvals are Nice

Apply for a mortgage pre-approval. This will give you an idea how much you can spend. You can easily narrow down the choices based on what you are eligible to receive. Once you find the home, you will know what your payments are going to be. A pre-approval also prevents you from getting excited about a certain home only to find out you aren’t eligible to purchase it. You can get a pre-approval from your local credit union or bank where you currently bank at.

Finding a Good Agent

To become a homeowner, you have to do a lot more than simply find the home and write a check. You also have to go through paperwork, inspections, closings and a number of other things before getting the home you want. You probably have a lot of questions about purchasing your first home. When you have a good real estate agent working on your side, they can answer all of those questions for you. Most of the time, the agent will split the commission with the selling agent, so you won’t have to worry about paying out of pocket for their assistance. Agents can help to relieve stress and allow you to focus on your new home.

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