Real Estate Tips for First Time Home Buyers

My goal as a realtor is to educate, educate and educate my clients. Especially my first time buyers. I think back on when I purchased my first home. I had absolutely no idea what I was doing and had very little information about the home buying process. I was a young 24 year old first time home buyer. I’ll be honest, I was pretty shocked when I received my pre-approval letter from the lender. I was making less than $40K per year, a single mom and not a lot of money saved. Here’s the deal. Becoming a homeowner is an achievable and possible goal. Have things changed since 2013? Absolutely! The housing market is insane and interest rates are over 5% but it’s possible.

Below are a few tips to practice now so you can be prepared to buy a home when the time comes.

  1. Start saving early. Buying a house with no money down is a real thing; however, there are other expenses to consider such as a home inspection, home appraisal, earnest money etc. All these things you will need money for.

  2. Work on your credit. When I purchased my first home, my credit was pretty good. I didn’t have a lot of debt such as credit card debt, student loans or car loan. Building your credit score will of course help you get a better interest rate but it will also show that you are responsible. Start by paying off or paying down credit cards. Obtain a copy of your free credit report to review for errors that could be disputed.

  3. Avoid financing anything new. Your debt to income ratio plays a huge role in getting pre-approved. Financing a car prior to getting a home is a big no no. Not only does it raise your debt to income ratio but your credit score takes a hit as well. Its best to just wait until after you’ve purchased your home to make any other large purchases.

  4. Set realistic goals. Heres what I mean. Know what you can afford and get what you can afford. Take a look at your finances and set your home buying goals with your finances in mind. We all have big dreams and goals. Remember, your first home will more than likely not be your last home purchase. Keep in mind that there are steps and levels. Be sure you’re comfortable with the mortgage payment you have in mind.

Follow along for more real estate tips.

Thanks for reading!

Candice

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