Buying a home is the American Dream. It's also something that can be very scary. If you are thinking about buying your first home, there are a few things you can do to get ready. Below are three steps you must take to prepare yourself for buying your first home.
Get Your Credit in Order
If you're buying a house, you probably aren't going to do so in cash. Instead of leaving things to chance, it's a good idea to start getting your credit in order. Start paying down any debts you have, make sure your payments are up to date, and generally establish a credit profile that lenders will like. The minimum credit score you'll need for an FHA loan is around 580, with most lenders requiring a score of somewhere around 640. If you can't get your score that high, you'll need to work with a specialty lender or wait until you can significantly improve your credit score.
Start Looking at Your Budget
Once you have your credit score set, it's time to start looking at what you can afford. This isn't a question of how big of a loan you can get - rather, it's a question of how much money you can afford to pay towards your mortgage every month. If you are currently renting, try to figure out what your current rental payment would get you if it was a mortgage payment. Try to leave a few hundred dollars a month available for maintenance to get a good idea of what you might be spending on your new home.
Figure Out What's Important
Finally, you need to start figuring out what really matters to you in a house. Everyone has their bucket list, of course, but you absolutely won't get everything from your first home. Instead, start looking at those things that you can't live without. Once you have that list put together, go find a realtor like those at RE/MAX Integrity who can help to turn your dream into a reality. With a little help, you should be able to find a home that has most of the things you want and everything that you need.
Buying your home is easier if you know what to expect. Get your credit in order, start looking at what you can afford, and talk to a realtor to find what you really want. With a bit of effort, you can become a home owner without gaining a great deal of stress in the process.
