Financial Considerations for First-Time home buyers

Bottom line before we dive into this educational article: If you’re ready to get the homebuying process started, having experts in the industry will help you make educational and stratigic decisions. Our whole team is here to answer any and all questions, and help guide you from living in a rental to buying your first home.

You've probably heard that getting pre-approved is a must for purchasing your home. Well, that part is true. But at Century 21 Atwood, we believe working on your credit score is your first priority for any first time home buyer.

Building your credit: Your credit is one of many elements that determin what home loan you qualify for, and the mortgage interest rate you could receive. A higher score often leads to lower monthly payments in the long run. Paying your bills on time and keeping your credit card balance low are two key steps to building a better credit. As you get closer to buying a home, we do not recommend upping a credit card limit or getting a new line of credit as this will drastically change your credit score number.

Auto transfer to savings for your house fund. One of the best ways to save is to set up autopay to a savings account. Setting up recurring transfers establishes a routine and builds your savings account for when you're ready to use it.

Get Pre-Approved. Getting pre-approved gives you a good idea on your budget and how much you'll be able to borrow for the home loan. A pre-approval comes from the lender that will rake in your credit score, debt to income, and that savings account you have been putting money tword. This will allow the lender to get an understanding of what you could be approved for and your target price range of a home. Once you get this pre-approval, you can connect with your realtor and start browsing for home.

Build a team of professionals. The best step to success and a fluild trascation is to connect with your trusted professionals. Having experts in the industry will guide you to make strong decisions based off your goals and finances. All while guiding you to the home of your dreams.

Tying it in a bow, when you are ready to get the process started, connect with your local real estate professional - they can get you connected to a team of professionals, and answer any questions you have regarding the process.