Tips for Buying Your First Home
You’re excited to buy your first home, but you may also experience some hesitation. Purchasing a home comes with an extensive checklist and mistakes you must avoid at all costs. To ease some of the pressure you undoubtedly feel, here are a few hints for buying your first house so you can be a proud homeowner rather than one filled with regret.
Save As Early As Possible for Your Down Payment
While modern lenders may accept mortgage applicants who offer less than 20% for their down payment, you’re better off getting as close to 20% as possible. Anything less than that percentage means higher costs overall, and you can expect to pay for mandatory mortgage insurance. If you have yet to secure your mortgage or find your dream home, focus on saving as much as you can for your down payment.
Work With the Right Real Estate Professionals
Put just as much effort into finding the perfect real estate agent as you do finding the perfect home. The right real estate agent is knowledgeable about the neighborhoods and properties in which you’re interested, and your agent must meet any special requirements or requests you may have. You should also look into working with a real estate attorney Austin. That way, you have someone on your side who can examine contracts and other legal documents before you sign them. You do not want to be stuck with a bad deal because you did not know what you were signing.
Pause Credit Activity
Besides checking your credit report for discrepancies and errors, pause your credit activity until after you secure a mortgage. You want to build your credit score as much as you can before you apply for a mortgage, and you want to protect that high credit score once you earn it. Avoid applying for other types of loans and try not to use your credit card.
Don’t Forget About Closing Costs
While saving up for the down payment, account for the closing costs involved with buying a home. Usually, these costs run between 2% and 5% of your loan amount. Closing costs include such items as title searches, home inspections and homeowner’s coverage. If you like, you can see if the seller would cover a percentage of the closing costs.
Take your time and do your research when buying a home, no matter if it’s your first or fifth. The right info could help you avoid a major disaster.