Home Sweet Home: 3 Tips for First-Time Home Buyers
Buying your first forever home is both an exciting and expensive process but getting lost in the thrill of the moment can increase your risk of falling into money pits in the real estate market. Purchasing a home is a complex ordeal for beginners and experienced homeowners alike, which is why taking the time to prepare for the biggest investment in your life is crucial. Rushing into a house without considering your budget and other factors can turn your dream home into a nightmare, which is why we’re here to give you a rundown on some basic tips to guide you through the homebuying journey. With that in mind, the tried-and-true tips below should help you get started in the right direction.
Tip #1: Improve Your Credit Score to Obtain A Mortgage Approval Faster
Buying a home is a massive investment, which means your credit score will have a significant impact on the home buying process. For one, your credit score can determine how much you can afford and influence the interest rate, wherein the higher the score, the better loan options you will have.
It can also save you plenty of headaches regarding the interest rate. With a FICO score of 750, for instance, you can expect to pay a total of $138,324 in interest when obtaining a $200,000 mortgage. With a lower score, the interest can bump up, forcing you to pay $35,000 or more.
This means that improving your credit score can influence the mortgage-approval process and increase your chances of securing attractive mortgage loan rates.
Tip #2: Compare Different Home Rates in The Area
Before drawing up your budget, it’s best to get to know the common pricing by comparing the homes in the area you’re interested in. Having a fuller overview of how pricing works in the neighborhood will give you a better idea of how much to bid on your prospective home, making it easier to create a budget that is realistic to you and the market.
Tip #3: Don’t Forget About Additional Homeownership Costs in Your Budget
One of the biggest mistakes of first-time homebuyers is estimating a budget that only considers the initial price of the property. Keep in mind that there are other homeownership costs to consider - from maintenance, insurance, inspection fees, closing costs, and other contingencies along the way.
Buying a property without anything left to your budget will leave no room for the rest, which can quickly put you in debt if you’re not careful.
The Bottom Line: Unlocking the Key To Your Dream Home
Applying for loans can be a complex process, especially for first-time homebuyers. Having the right guide can take the drudgery away from finding the right mortgage solution for you, so why not simplify your home buying journey with us at HI Velocity Mortgage?
We’re the best mortgage broker in Ewa Beach, Hawaii, that can connect you to plans that meet your financial goals and make the mortgage process an easier ordeal. Get in touch with us at (808) 722-1055 and see what we can do to help you through the home buying and home lending process.