Buying your first home is one of the most important decisions of a young person's life. There aren't as many decisions quite as big as purchasing your first home. It can be especially exciting if it's your first time. Buying a home is one of the best ways to invest in your future and, of course, provide you with a place to live and grow. It can be intimidating for first time home buyers, but the process should be pleasant and exhilarating; after all, you're finding a place to set your roots. If you're thinking of buying a home soon, you should start preparing by taking the following steps.
Set Your Budget and Start Saving
Probably the first step, once you decide that you're ready to buy a home, is setting a budget for yourself and beginning to save. Typically, buying a home requires a loan, but the more money that you save, the better the terms of the loan. You'll also want to save money for renovations and repairs in the event that you find your dream home needs a little fixing up. Today it is common to put 20% down, but some home lenders allow you to put down much less money. Setting aside money from work bonuses, tax returns, and more are good ways to begin putting money towards a new home. You want to find a place for you to set your roots and grow, but your first home shouldn't stretch you to your brink financially. Only aim for a home that you can afford.
Check Your Credit and Explore Mortgage Options
Buying a home is a major financial decision. So you want to know what your credit reports look like before diving in. Your credit is also a significant factor in whether or not you're approved for a loan and what the terms will be. Make sure that your credit score is accurate and dispute any inconsistencies. Pay off any outstanding debts or make a dent before buying a home to improve your credit score. There are many different mortgage options available today, each with their own pros and cons. Find a mortgage lender that you can trust to help you navigate your options. Experienced lenders can give you a better idea of just how much you can afford based on data and history. As you begin to get closer to purchasing a home, consider getting pre-qualified for a mortgage, it'll help give you an estimate of how much a lender will lend you. It also gives you a competitive advantage in the market.
Know What You Want
For first time home buyers, they're often coming from the rental market, so there may be a decision between a condo and buying a home. It's a common dilemma. Condos often come with terms to abide by; it's important to look into those before considering a condo. A plus of condos is that they don't require as much maintenance as owning a home. Don't forget to take the location into account with your home buying decision. The neighborhood is often just as important as the home itself.
If you're considering purchasing your first home, reach out to Bergen Realty Team today. You can reach us at 201-281-5594 or using our contact form.