There is always a tendency for first-time homebuyers to become overwhelmed with so many questions related to the home buying process, especially the financial aspect of it. After all, a house is known to be one of the most expensive purchases anyone will make in life. It is but natural for you, the newbie homebuyer, to make sure you get every dollar’s worth of your hard-earned money.
Here are some tried-and-tested mortgage tips from real estate experts for first-time buyers to help put your money worries to rest.
Take care of any outstanding debt
The first and most important step toward a less stressful home purchase is to ensure your capacity to handle the added financial requirements of a monthly mortgage. Other than simply looking at the price tag of the property, you also have to account for insurance, renovations, maintenance, homeowner’s association fees, taxes, and more.
For your peace of mind, pay off any major debts like credit cards, auto loans, and/or student loans before beginning your home purchase journey.
Find first-time home buyer programs that you qualify for
Some government and non-government programs can help you manage your mortgage costs, from down payment to closing. These include down payment assistance loans and grants, FHA loans, USDA loans, and VA loans.
You may also want to look into the Good Neighbor Next Door program of the Department of Housing and Urban Development. This particular program offers a generous 50% off on some of the properties owned by the HUD.
If you’re not sure where to start, a consultation with the Capital Real Estate team can help put you on the right track.
Set up an emergency fund
The total cost of homeownership comes with a host of add-ons. With the extent of money leaving your hands, you still have to consider one more thing – home maintenance, repairs, and other unforeseen issues. That’s why it helps to have an emergency fund in place.
Save up to at least six months’ worth of income to boost your preparedness for such events. That way, you put yourself in a good financial position even as you pay your mortgage payments.
Know your credit score
A credit score is a great indicator if now is a good time for you to buy a home or if you need to work on improving your numbers to reduce future interest payments.
Likewise, as you go about shopping for a lender, know that if you do not provide them with a copy of your credit report, lenders will conduct their own research into your credit score. Too many inquiries regarding your credit score within a short time frame could negatively affect your rating. They will see this as a red flag, marking you as a huge risk.
Thus, it will be wiser to bring your own copy of your credit report and present it to your lender to get informal rate quotes.
Learn other useful mortgage tips for first-time buyers by calling us at Capital Real Estate today at 801.330.8986. You can also visit our website or email us at info(at)capitalrealestate(dotted)co. Our team welcomes any queries you may have about buying your first home in Salt Lake City and nearby areas.