Tips for First Time Homebuyers
Congratulations on embarking on the journey of becoming a first time homebuyer! Purchasing your first home is an exciting and significant milestone. We understand the importance of taking the right steps before settling into the home of your dreams, so we are here to provide tips that every first time homebuyer needs before starting this journey.
Establish a Budget
The first step to take before buying your first home is determining exactly how much you can comfortably afford for things such as a down payments, monthly mortgage payments, property taxes, insurance, and maintenance costs. You can use our Home Buying Calculators to get a better picture of what you will be able to afford based on your monthly income.
Check Your Credit Score
Before applying for a mortgage loan to purchase your new home, you will want to check your credit score to ensure it’s in the best shape possible. The better your credit, the more likely your chances to be approved for a loan with better rates and terms, so it’s important to know exactly where you stand. You’re entitled to one free credit report every year from AnnualCreditReport.com. It’s important to report any discrepancies that you notice on your credit report to the credit bureaus to have them removed or corrected. Eligible members can view their FICO® Score for free through Digital Banking. Knowing the state of your credit score will help prepare you for buying a home by making you aware of any issues you may need to address before applying for your mortgage.
Get Pre-approved for a Mortgage
Once you’ve determined exactly how much you can afford on your next home, we advise that you get pre-approved for a mortgage. This will give you a clear understanding of your finances before you pick out your home. You not only know your spending capacity, but you will also find out about the terms of your loan. Knowing your spending limit will keep you from wasting time on homes you can’t afford. Getting pre-approved can potentially make your offer more attractive to sellers because you will have proof of financing while others may still need to get approval.
Determine What Your Want in a Home
After getting pre-approved for your mortgage loan, you can officially begin looking for a home that fits your needs and your budget. What are some things you’re looking for in your home? You will want to consider factors like proximity to work, school zones, amenities, and even future development plans for your neighborhood. You may also want to make a list of “must-haves” and “nice-to-haves” to help you pick the home that best suits you. List factors such as the size of the home, number of bedrooms, layout, yard space, and any other specific features you desire. These lists will help you stay focused during your search.
Find a Reliable Real Estate Agent
It’s important to find a reputable real estate agent that you feel comfortable working alongside you throughout your home search. Having an experienced agent you trust is critical when it comes to finding your needs and wants in a home. Your agent will ensure you are aware when any properties become available that match what you are looking for. Your ideal agent should have experience assisting homebuyers such as yourself and be familiar with your local market, especially in the current housing market when there are more buyers seeking than there are homes available. Overall, having a knowledgeable agent by your side can greatly reduce your stress during your home buying journey.
Conduct Inspections
Once your realtor finds you a potential home, you’ll want to hire a professional home inspector to assess its condition. This will help identify any underlying issues or required repairs, allowing you to make informed decisions about this property.
Review Paperwork
Be sure to carefully read and understand all documents related to your home purchase. These may include the sales contract, mortgage agreement, and any other legal paperwork. If necessary, consult with an attorney or financial advisor to ensure you fully comprehend the terms before signing any documents.
Take Your Time and Be Patient
The home buying process can take time, so it’s important to be patient and not rush into a decision. Don’t settle for a property that doesn’t meet your needs or doesn’t feel right. It’s important to trust your instincts and take the time to find the perfect home for you.
Next Steps
- If you’re ready to apply for a mortgage loan, let our team help you get the loan you need! Apply for a mortgage loan online or set up an appointment to speak with one of our Mortgage Loan Officers
- Watch our Buying a Home video series on YouTube
- Read more tips for buying your first home
At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.