For first time home buyers, buying a house is often the most significant and terrifying financial decision they have ever had to make. Buying a house can be stressful, time consuming and overwhelming for anyone but particularly so for first time home buyers who haven’t gone through the typically very complicated home buying process before.
However, buying a home for the first time doesn’t have to be quite such a stressful ordeal if you know how to effectively prepare from the get go. If you’re thinking of buying a house this year, here are 5 tips to help make the process simpler:
- Know That It’s a Buyer’s Market
Ever since the 2008 Recession it’s been a buyer’s market in the real estate industry across much of the country. Although things have begun to pick up in the last year or so, the real estate industry is still struggling in many areas, making it an ideal time to buy for first time buyers. Slashed house prices, reduced mortgage rates and more houses available on the market, in many areas across America now is the time to buy for anyone that’s looking for a great deal in real estate.
- Have a Good Credit Score
Getting a loan with bad credit can be extremely difficult, and this very much applies for mortgages. Unless you can pay for your house in full with cash, you will need to have a decent credit score to secure a good mortgage rate. If your credit score doesn’t currently have a great rating, take steps as of now to improve it. Pay off any debt you can and stop making as many charges to your credit card. A good credit score really is essential when buying a house, so do all you can to maintain your existing good score and if you have a low score immediately take direct steps to improve it.
- Shop Around for a Mortgage
When you’re looking for a mortgage company to buy your first house through, be prepared to shop around in order to find the fairest deal. A lot of mortgage companies will try and reel you in with alluring offers only for you to find further down the line that you were misled, so be prepared to get in contact with multiple companies in order to find the absolute best mortgage rate and deal.
- Choose a Budget and Stick to It
Buying a house is of course a massive purchase; one that may takes many years and likely decades to pay off. As a result, it’s crucial that you choose a budget on your first house and don’t go over it. If the housing crisis of the last few years has taught us anything it’s that buying a house beyond your means can be an extremely bad idea. Realistically calculate how expensive a property you can afford to make a down payment for and secure a mortgage with, and try to stick either with or below this budget.
- Get all of Your Documents in Order
Once you’ve made an offer on your first home, you will need to submit many documents to complete the transaction. This can include your last few paycheck stubs, a copy of your social security card, recent bank statements and a copy of your driver’s license – just to name a few. Therefore, avoid any last minute scrambling for these documents by creating a file with all the documents you expect to need well before you even make an offer.
Buying a house this year could very well be within your reach, and use our above tips to help you successfully purchase your own property. Good luck!
Image courtesy of renjith krishnan / FreeDigitalPhotos.net