4 tips for first time home buyers

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Buying a home is a very thrilling experience. It ‘s hard to realize what to expect. The learning curve can be very steep. But if you do a little homework, then most of the issues can be resolved. Here are five steps that you must follow.

Check your credit

If you want to be eligible for a loan, you need to check the credit score. The standards are high for credit scores, and it affects the cost of the loan. Look through your unpaid accounts and pay off your credits as much as you can before applying for a mortgage.

Evaluate assets and liabilities

If your payments are up-to-date, and you don’t own too much money, then analyze your assets and liabilities. You should track your spending for a few months to see where the money is going.


Organize documents

You should organize all the documents required for a mortgage.You should find out from the lender what kind of papers you need to present, like a bank statement, tax documents, etc.

Find out whether you qualify

You must know how much you can pay for your mortgage. You should also know how much down payment you can afford. By calculating the debt-to-income ratio, you will have a good idea of what you can afford. Usually, you need to allocate 28% of your gross monthly income towards housing costs.

You should speak with mortgage lenders to know the terms and conditions in detail. You should check with friends, co-workers, and neighbors to find out which lenders they enjoy working with.