Younger people are the most likely to buy a home. A reported 82% of first time home buyers were between the ages of 22 to 30.
Buying a house can be a challenge for a first-time homebuyer. There are various stages to the process. Each one can affect how you move forward.
Guide to Buying Your First Home
Start Saving Early
A down payment is usually required. The mortgage type and the chosen lender will depend on how much you will have to pay. A down payment calculator can help you decide on a financial goal. You can then build up your savings to reach the set target.
There are costs involved when finalizing your mortgage. Closing costs are the fees, and expenses are paid at the end of the home buying process.
Build Up Your Credit
Your credit score will determine if you can qualify for a mortgage. It will have an impact on the interest rate lenders will offer you. You have to strengthen your credit score to help you achieve the best deal.
Keep track of your credit score. Look through your credit reports for any errors that could impact your score. Ensure that you pay your bills on time. Try to keep a low credit card balance.
Explore Your Mortgage Options
There are various mortgage options available. Each one has different eligibility options and down payments.
Conventional mortgages can be harder to qualify for than government loans. Some are targeted at first time home buyers. They can require as little as 3% for a down payment.
Veterans who are first time home buyers should consider a VA loan. The VA home loan rates are lower compared to other mortgage options. They usually do not require a down payment.
Those buying a rural property have the option of a USDA loan. The U.S. Department of Agriculture supports it. It is for those without decent, safe and sanity housing. It is available to those unable to secure a home loan from a traditional source.
Invest In An Inspection
Home inspections are an in-depth assessment of the property. It looks at the mechanical systems and the structure. Professional inspectors will search for potential problems in the property and highlight any they find.
The results provided can help you decide about moving forward with the property. Any concerning issues could be costly in the future. You can use the results to negotiate the price of the house. Ask the seller to lower the cost of the property because of issues found. Or you could ask them to repair the problems before moving in.
Create a checklist of what needs completing in the house buying process to minimize any setbacks that occur.