First-Time Home Buyer Tips
Buying a home can be at times overwhelming. Here is quick list of useful first-time home buyer tips. We cover each topic in great detail in our blog. Happy reading and let us know if we can help, we are open 24/7 to answer questions.
- Order a free credit report AND view your three credit scores
- Review your credit report and clear up any derogatory accounts
- Do NOT open any new credit accounts or make any large purchases before/during the loan process
- Calculate your total monthly bills/liabilities
- Determine how much you are able to put down
- If you put down less than 20% deposit you will have to pay mortgage insurance
- Figure out your DTI and subsequently what you can afford
- Make sure you have a 12-month verifiable housing history
- Make sure you have a seasoned asset account with at least 2 months PITI
- Set aside money for a down payment and closing costs in a verifiable account in advance
- Decide what loan type or loan program best suits you
- Get pre-approved for a mortgage and obtain a pre-approval letter
- Shop around with multiple banks and lenders, not just the one that pre-approved you
- Compare mortgage rates extensively
- Lock your mortgage rate when you’re satisfied to ensure it doesn’t increase
- Get a better understanding of mortgage closing costs o you know what to expect in the way of fees
- Breathe!
