Tips for First Time Homebuyers
1. Save Money – If you are a first time home buyer, there are a number of reasons to stash some cash. While there are loan programs available that do not require a down payment (like USDA Rural Development and VA mortgage loans), most first time home buyers don’t consider other costs associated with becoming a home owner. Closing costs, homeowners insurance, and home inspection fees may still be applicable. Start saving now, for less stress later.
2. Check Your Credit – No one likes surprises on their credit reports. New home buyers are even less thrilled to discover they have problems on their credit reports that they were unaware of. Checking your credit early allows you to come up with a game plan. Lenders have minimum credit score requirements for every loan program that a licensed mortgage loan officer can explain in detail – and often help you achieve given the right time.
3. Organize Your Documents – Financing a home requires quite a bit of documentation. Gather your tax documents, investment and banking statements, student loan pay-off information, pay stubs, etc. Your loan officer will let you know what exactly what documentation is required for the home financing you need – but it never hurts to have your documents in proper order before beginning the process.