Before Buying Your First Home…Read This!

Are you one of the many Millenial Americans dreaming of Buying Your First Home, but don’t quite feel ready? People delay homeownership for many reasons; some are unsuredream home where to settle down, some have poor credit and fear they won’t get approved. As a Mortgage Loan Officer, I understand that every person has a different path to homeownership. If you foresee a home purchase in the next few years, now is the best time to start preparing, and I’m here to help!
Just as with any project, your preparation will set the stage for your success. Think of your First Home Buying experience as your largest personal project yet!

Step One: Identify Your Goal
*Phew*, that one was easy! You’ve already completed step one, your goal is to purchase a home.

Step Two: Research
Have you made a choice about where you’d like to live? Researching towns is an important part of the process. You will want to evaluate average home prices for the neighborhood, consider potential property taxes, crime rates, and school ratings, and, more personally, determine the proximity to amenities that are important to you.

Step Three: Set a Timeline
Just like registering for a race inspires a runner to kick start their training, establishing a home buying timeline can help a prospective homebuyer kick start their preparation! Most importantly, be sure to set a realistic and achievable goal. If your aim is to purchase a home within two years, think about what you will need to do over the next 24 months to make that a reality. Are you allowing enough time to improve your credit score? Is there enough time and money each month to save for an ideal down payment?

Step Four: Take Action
With a prospective closing date in mind, do your best to stay on track toward your goal:
•   If you haven’t yet, you should check your current credit score. It is wise to figuregood-credit-vs-bad-credit this out as soon as possible. Once you know, you will be able to see where you need to do work to improve it. Whether it is paying down credit cards, or enlisting the help of a credit repair service, your credit score is crucial to the mortgage application process. It is best to start preparing now!
•   It is wise to start saving what you can, even though there are loan products that offer little or no down payment options. Remember that there will be closing costs, Family Financesmoving expenses, as well as repairs and furnishings to include in your budget. For a goal of collecting $20,000 over the next two years, you would need to save $833 each month. If you can’t find room in your budget to set that aside every month, consider extending your timeline a bit longer. If someone in your life will be gifting you funds to assist in the home purchase, try to discuss what that amount will be, so you can adjust your own savings plan accordingly.
(If you plan to use gifted funds, you will need to have a gift letter documenting it; as your Mortgage Loan Officer I will be happy to assist you with preparing one.)

Step Five: Talk to your Mortgage Loan Officer
Following these preparatory steps, you will be in a good place when you are ready topre-approval-2 start the official home buying process. When the time is right, reach out to Me to talk about your mortgage options and to take advantage of my FREE Jumpstart Mortgage Pre-Approval service.

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