5 Tips for First Time Home Buyers
I get a lot of requests to coach people on buying their first home. To most, this may seem like a very scary thing, but these 5 tips will put you at ease when going for your first home.
#1: Check yourself before you wreck yourself.
What this means is you need to check your budget. Record every dollar that comes into your pocket and every dollar that goes out each month. The goal is to be what we call “cash flow positive.”
#2: Get a pre-qualification letter from a lender.
What you are looking for is the amount the bank will lend you for a mortgage. Note, just because the letter says you can get X amount, does not necessarily mean you should. What you spend will all be based on what your budget can handle.
#3: Window shop.
I always suggest you do thorough market research in the area you would like to live. Looking at all of the properties for sale in your price range, for a period of at least 6 to 12 months, will give you a solid feel for the market and the going prices.
#4: Keep an eye on your credit.
Shoot for at least a 750 credit score or higher to ensure you get the best possible rates.
#5: Down payment.
Start setting aside money each month for a down payment. If you can have 20% ready at the time of closing, you increase your chances of getting your first home without any disappointments.