3 Tips for First-Time Home Buyers
Purchasing a home is a big deal, and as a first-time home buyer, you may not know where to begin. These three tips will help you prepare you for the beginning stages of the home-buying process, ensuring that you can settle into your perfect home in no time.
1. Start Saving for a Down Payment in Advance
Traditionally, home buyers put down 20% of the total amount. Some lenders allow buyers to put down as little as 3% as a part of first-time home buyer programs. Keep in mind that by putting down less than 20%, you may incur higher costs as well as possibly paying for private mortgage insurance. A down payment of 5% can still be hefty depending on the overall cost of the home. Find a goal amount by playing around with a down payment calculator. A few tips for saving for your goal down payment include putting aside any work bonuses, extra paychecks, and tax refunds, tracking your progress on an app or in a notebook, and setting up automatic savings transfers each month from your checking account to your savings account.
2. Check Your Credit Before Applying for a Loan
Your credit plays a major part in the approval of your mortgage loan, so it is essential that you keep your credit before beginning the home-buying process. Credit helps calculate your interest rate, and sometimes even the loan terms. Checking your credit in advance provides you with additional time to dispute any errors and opportunities to improve such as paying off any outstanding debts.
3. Compare Mortgage Rates
Many first-time home buyers get a quote from one lender without asking any questions or looking at other options to save money. Comparing rates among mortgage companies helps narrow down the search for the best lender for you. Consulting with a mortgage company in Las Vegas can help answer any questions you may have such as questions in regards to interest rates and down payments.