First Time Home Buyer: Everything you need to know about a New Home Loan

First Time Home Buyer: Everything you need to know about a New Home Loan

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

•           Qualify

•           Budget

•           Research: Lenders

•           Realtor / Agent

•           Find Your New Home

•           Accomplish Your Goals

 

 

Clean Up Your Credit

  • 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.

 

PITI: Understanding the Cost of Home Ownership

  • 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.

 

Qualify: How Much CAN You Spend?

  • Prepare documents: assets, income, and expenses
  • Apply: pre-approval letter
  • See article for more down payment advice.

 

Budget: How Much Do You WANT To Spend?

  • 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

 

Visualize It: Finding Your New Home

  • 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.

 

Accomplish Your Goals

  • 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.

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