If you believe you are coming close to the time to buy your first home, you'll want to be informed. It’s never too early to begin preparing for a home purchase. The more organized you are, and the better you have your financial situation in order the better off you’ll be when it comes to the home search. Where should you start? Below, you’ll find some key things that you can do to maximize your chances of finding and securing your first home.
Check Your Credit
Your credit score is one of the most critical pieces of your financial picture. A FICO score ranges from 300 to 850. The higher the number, the better off you are. When you’re getting a mortgage, you want to have good credit. If your credit score is above 740, you’ll be eligible for the best interest rates. If your credit score needs help, a higher score will get you the best interest rates available. Once you get your credit score, (It’s free to get through a variety of services.) aim to improve your score. Pay your bills on time. Use less of your available credit (target to use 30 percent or less of your total available credit.) The bottom line is that a low-interest rate will save you a significant amount of money over the life of your loan.
Refrain From Opening New Accounts
If you’re in the market to buy a home, it’s probably best for you to stay away from opening new accounts. Every store has their credit card and offers deals to open an account in store. While it could save you some money on your purchase, opening new accounts has a negative impact on your credit score in the short term. A car loan, for example, will also affect your credit score because it brings your debt-to-income ratio up, which can put a damper on your chances of getting a mortgage for a low-interest rate.
Save, Save, Save
If you want to buy a home soon, you’ll need to save up a significant amount of money. These savings will go towards a downpayment, closing costs, and furnishing your new place. Every chance you get, you should be putting money away. Include gifts, bonuses, and any other income that’s outside of your average take-home pay.
It’s also a good idea to set up a second bank account dedicated to saving for the home. Set up an automatic transfer each month that will go into that account from your primary earnings. You can d this based on how your employer pays you.
Look For A Real Estate Agent
Your real estate agent will be a crucial part of your home search. They will help in everything from finding the property of your dreams to negotiating the deal to sitting by your side at closing. You should do a bit of research to help you find a real estate agent who can assist you in finding the right property for you.
Ask family and friends for recommendations of agents. You can search for the real estate agent’s name online and see what kind of reviews the agent has and contact different agents. From there. You can make a decision.
Now, good luck with your home search!
About the Author
Ryan Christensen
Responsive, Responsible and Resourceful - How Real Estate Should Be. This is the foundation of our continued success: responsive service, providing accurate and timely information, and demystifying the process. 100% of my business is referral based because I listen to my clients' needs and exceed their expectations. As a full-time real estate broker, I am the best advocate for both my buyers and sellers. I am always available, regardless of the time of day.
Being a native Southern Californian is a tremendous advantage. I know the area. Time is more valuable than money, but neither can be wasted. And, I'm a fan of hard work. My clients can enjoy their home buying and/or selling experience because I provide a trusting, focused, straightforward approach. I look forward to helping you achieve your goals and find joy in homeownership.
I am both a licensed Real Estate and Mortgage Broker. Others choose to concentrate on one or the other. I provide a higher level of service and expertise than those who do not obtain this dual skill set, which differentiates me from other service providers. My decisions and advice are based solely on what is in the best interest of my clients. I use Real Estate Sales as a tool to make sure my clients get the home that meets or exceeds their needs. As a Mortgage Broker, I search for the best loans so I can offer lower rates and pricing than my financing competition. This certainly IS in the client's best interest.