Buying your first home is one of the greatest adventures in life! There are, however, a few tips you need to be aware about in order to make the process as smooth as possible: let’s take a look!
Before you buy a home, consider what you need in a home. Ask yourself some questions, such as the size of your family, how many bathrooms you need, the neighborhoods you like, what kind of home you can afford, etc. This will help you to narrow things down a lot and your proper search can officially begin.
A downpayment is sometimes essential for a lender to consider granting you a loan. The bigger your downpayment, the bigger the loan, so definitely make sure that you have saved as much as possible!
When calculating what price home you can afford, take into consideration your monthly expenses and income. Generally, your monthly expenses shouldn’t exceed a certain percentage for lenders to consider giving you a mortgage.
As with everything, it is good to shop around, especially with loan lenders! Make some inquiries and get a few quotes and you will be surprised at what you learn!
Just before you begin seriously looking for a house, make sure that you are pre-approved for a loan. This makes the entire purchasing process that much easier and makes you more likely to succeed when making an offer.
Finally, once you have found your dream home and have been approved for a mortgage, ensure that your rate has been locked for at least 90 days. You never know when rates will increase and this may happen just before you are closing on your home. Approval for a locked rate means that your rate will stay the same, giving you peace of mind as you formalize all the paperwork for your new home!