Getting preapproved is the first step to buying your first home. This involves providing detailed information about your income and assets to a lender, who then issues you a mortgage preapproval letter.
Ultimately, this gives you a clear idea of how much of a loan you can get and how much interest you will pay. It also shows the seller that you are a serious buyer and can secure financing.
Know Your Budget
Before you even begin looking for your first home, it’s important to know what your budget will look like. It will help you determine whether or not your dream home is actually within reach.
The best way to do this is to take a close look at your current expenses and cut costs where possible. It may be as simple as cutting back on entertainment or taking a staycation instead of going out.
Make A Down Payment
Buying your first home can be a significant investment in your life. It’s important to make sure you can afford it and stay within your budget before you start looking.
One of the most common mistakes that homebuyers make is not saving enough for a down payment. Whether it’s because you live below your means, transfer tax refunds to a savings account or get work bonuses, it’s important to create a plan to save for a down payment and follow through.
Choose A Lender
As a first time home buyer, you want to work with a lender who will help you navigate the mortgage process. They should also be an advocate for you and make sure you have the best possible experience.
You can choose the right mortgage lender by finding out if they’re locally-based and experienced in your market. You may also want to ask around for referrals from real estate professionals or friends who have used a particular lender.