Happy New Year! 2023, here we come! With the new year comes new possibilities and new opportunities. First-time home buyers, this article is for you. Purchasing a home is one of your biggest investments. It can be overwhelming and stressful. Here are some tips to help you:
Start saving early
Purchasing your own home may be the largest purchase you can make. The median monthly mortgage payment in the U.S. is $1,100, as reported by the U.S. Census Bureau—and this doesn’t include other costs related to homeowners insurance and property taxes. One way to make sure you are ready to take this step is by starting to save for a home sooner rather than later.
Tips for saving for a down payment: Commit to cutting unnecessary expenses, get a side job, reduce electricity consumption, check out first-time home buyer programs, use windfall money to grow savings, or negotiate a raise.
Decide how much house you can afford
There are a variety of factors that go into this: income, debt, down payment, credit score, and where you plan to live. To figure out how much house you can afford, click here.
Check and strengthen your credit
If your FICO credit score is poorer than you expected, there are ways for you to boost it. You should raise your credit score before you apply for a loan because it can take months to see a change in your FICO score, depending on where you start and your end goal.
There are many apps and free services that can assist you in setting up a budget and fixing your spending habits. You can also reach out to us! We have years of experience helping homebuyers improve their credit to help them qualify for a better rate.
Explore mortgage options
There are a plethora of mortgage options out there. The key is finding the one that fits your situation. At Aslan, we have access to extensive lending options leading to the purchase or refinance of a residential home loan. In fact, we can’t think of a financial product that we don’t employ for our clientele. That includes conventional loans, FHA, jumbo, VA, USDA—all the usual suspects. Reach out to one of our loan officers to see what option is best for you.
Pick the right type of house and neighborhood
Work with a real estate professional who knows the area well when researching the neighborhood you are interested in. They can advise which spot in the area is the best for your family. Some factors to consider are neighborhood safety, parks and recreation, shopping essentials, retail, and healthcare, commuting time, schools (if you have children), dining, and the current value of the housing in that area. Find out what properties in the area are currently valued at, and inquire from a real estate agent how that compares with the average value five and ten years earlier.
Purchasing your first home can be overwhelming. But with the right people at your side, it can be a smooth process. We are here to help you and guide you through the entire process from start to finish. Reach out to one of our loan officers today!
*Source: NerdWallet