Home buying tips from industry professionals
There are many places to start when looking to purchase a home. If you are new to this process or just want some new ideas we have put together a few home buying tips that should help make the process a little easier. Some of these may be commonsense but the majority of buyers often over look these things and get emotionally attached to a home.
Check your credit
The homebuyer’s credit score is one of the most important factors when it comes to qualifying for a home loan these days.
Evaluate assets and liabilities
A lot of home buyers feel just because they do not owe too much money and their payments are up to date that everything is ok. But how do you actually spend your money? Do you have a lot excess cash left over every month, or are you on a shoestring budget?
A first-time homebuyer should have a really good idea of what they owe and what they have coming in monthly. Additionally, buyers should have an good understanding of how lenders will view their credit which requires some basic knowledge of mortgage lending.
Mortgage lenders will require 2 recent pay stubs, the previous 2 years’ W-2s, tax returns and the past 2 months of bank statements. Buying a home is a long process, but knowing what you need and where to find it can save time when you’re ready.
As a first-time homebuyer, you should already know how much you can afford to spend before the mortgage lender tells you how much you qualify for. If you need help with this checkout a mortgage calculator. After you calculate your debt-to-income ratio and factor in the down payment, you will have a pretty good idea of what you can actually afford as a deposit and as a monthly expense.
Figure out your down payment
Use a mortgage calculator, go over your bank statements and make sure you keep some savings for the future just incase something unexpected comes up a long the way. There are also multiple programs available that can assist buyers with qualifying incomes and varied situations.
Speaking with mortgage lenders when you’re starting the process can really help you along the way. Ask friends, co-workers and neighbors so you can find out which lenders they liked working with and make sure to ask them questions about the process and and other steps you should start with.