Buying your first home is an exciting time!
If you are a first time home buyer, complete this checklist to ensure it’s a great experience. Read our other articles for more information about mortgages, home buying, and paying off all of your loans.
• Clean Up Your Credit
• Research: Lenders
• Realtor / Agent
• Find Your New Home
• Accomplish Your Goals
- Pay your bills on time and pay off small debts.
- Avoid new credit or major changes during loan process.
- See article for more credit advice.
- The total of your housing payment, taxes and insurance should be under 28% of your income.
- Your total debt level should not exceed 36% of income.
- See article for more PITI advice.
- Prepare documents: assets, income, and expenses
- Apply: pre-approval letter
- See article for more down payment advice.
- Have a spending plan.
- Pay into your savings first and spend less.
- See article for more budgeting advice.
The Right Lender is as Important as the Right House
- Loan term and rates (fixed / adjusted)
- Property appraisal Origination charge (good faith estimate)
The Right Realtor can be Vital for the First Time Home Buyer
- Match your dream to your budget: knowledge of the market
- Make an offer: negotiate costs and contracts
- Closing: final walk-through, insurance, documents, payment
- Prioritize: must haves, bonus, deal breakers size, bathrooms, backyard, kitchen, pool
- Location: neighborhood, schools, highway, public transportation, parks, shopping
- See article for more advice on living the dream.
- Principal (auto payments): just one extra payment per year makes a big difference
- Emergency fund (insurance deductible plan for maintenance
- See article for more pay off advice.