Buying your first home can be both thrilling and stress inducing. Stress tends to surface when problems arise during the home buying process. We believe there are several things potential homeowners should do prior to seriously looking for a new home, which can reduce or eliminate stress.
- Examine Your Credit Score: It is extremely important to maximize your credit score prior to purchasing a home. One way to do this is to access your credit report and make payments to creditors to lower your debt-to-income ratio. Even if you pay your bills on time, your credit will be “dinged” if you are close to your credit limit on lines of credit. Credit scores can take time to improve, so the earlier this is addressed, the better.
- Develop a Realistic Budget: Provided you are approved for your loan, there are other factors to consider when determining a price range for your first home. Things such as property taxes, utilities, and home improvements will add up quickly. Be sure to include these factors in your budget.
- Resale: It sounds a little silly to think about selling a home that you have not yet bought, but it is an extremely important thing to consider. Odds are, you won’t live in your first home forever, so keep a few things in mind. Future buyers will be interested in things like property taxes, city services, location, safety, and schools. Even if these do not concern you, they will likely be deciding factors for the person to whom you sell your home.
- Condition of the Home: Consider showing the home to a friend or relative in the construction business. If you don’t know anyone, perhaps hire a contractor to assess the home with you. Someone skilled in this field will identify possible problems with the home and can give you an idea of the financial implication.
- Don’t Buy More Home Than You Can Afford: Just because you might qualify for a certain amount, make sure you are not stretching yourself too thin. Never buy a home based upon projected income for the future.
At Concord Mortgage Inc., we pride ourselves in working closely with our customers in an effort to ensure a pleasant home buying process. Our friendly staff is motivated and ready to help you get the necessary financing to make your dream of owning a home a reality. Contact us today!