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Financial Advice for First-Time Homebuyers

Friday, December 30, 2022   /   by Laura Larson

Financial Advice for First-Time Homebuyers

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Do you intend to purchase your first home soon? If so, make sure you have enough money to make the purchase is one of the first things you should do. In this blog, we are providing just a few key financial principles you should pay attention to as you start the home-buying process.
 
Improve Your Credit
One factor that determines which house loan you'll qualify for is your credit score, which also affects the actual interest rate on your mortgage. A higher credit score may eventually result in a reduced monthly payment even though there are many other elements involved in your mortgage application.
 
So how can you ensure that when the time comes to buy, your credit is in the greatest possible shape?
 
- Monitor your credit and challenge any inaccuracies on your reports.
- Make on-time bill payments. Pay your loans and close any unused credit lines.
- Maintain low credit card balances. When able, pay more than the minimum monthly balance.
 
Save Automatically Towards Your Mortgage.
You might be also thinking about how to save enough money for the downpayment. You should start looking for down payment assistance programs and finding methods to save more money more quickly. According to a Bankrate article: “One of the best ways to save for anything — including a down payment — is to set it and forget it. If you receive a regular paycheck, ask your employer to direct a portion of that payment into a savings account. If you’re a freelance worker or independent contractor, set up a recurring transfer from a checking account to a savings account to establish the routine.”
 
Obtain Pre-Approval
You should be well aware of your spending limits and the amount you may borrow for a mortgage as you are getting ready to make your purchase. The pre-approval procedure enters the picture here. You can find out how much money you can borrow for a house loan by getting pre-approval from a lender. Additionally, knowing your funds and your intended price range for a home might assist you to make that decision. You can then start looking for a knowledgeable local realtor and start checking homes online to see what's available in your neighborhood at that price range.
 
Rely on a Team of Experts
Finally, once you connect with a reputable, local real estate expert ensure that your Realtor works with a team and has recommendations for lenders and other professionals. You will be able to make smart choices throughout the home-buying process based on your unique goals, finances, and circumstances if you have industry experts by your side. They are market experts and can point you in the direction of the house of your dreams.
 
Bottom Line
If you're prepared to start the home-buying process, get in touch with Laura Larson right now to start assembling your team of experts.