First Time Home Buyer Tips Part 2

Dated: 12/13/2017

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Tips to Improve Home Buying Process

Your home will probably be the most expensive purchase you ever make. That’s why it’s important to research every aspect of the home buying process–and make sure you do things right from the start.

Part of that process involves getting your own financial house in order. Here are some steps you should consider taking as you prepare your finances for the prospect of a mortgage:

Make Sure Your Credit Is in Good Shape

If you want to qualify for the best mortgage rates possible, it is important that your credit score is in tip-top shape. If your credit score needs work, there are plenty of steps you can take to improve it. Some of them include paying down debt, and paying your bills on time, every time.

Pay Down Your Debts

Not only can paying down debt improve your credit score, it can increase your chances of getting qualified for a mortgage. Once you owe less money, you should have more expendable income each month that you could save for your new home’s down payment—or for repairs or upgrades once you move in.

Paying down your debts can also help you qualify for a mortgage, since lenders prefer to have your total debt obligations—including your new mortgage—to represent no more than 43% of your income.

Avoid New Debts

Try staying away from new debts. Remember, any monthly obligations you have could stand in the way of taking out a mortgage for the home you really want to buy. As you prepare to buy a new home, try to stay away from taking out any new loans, including car loans. 

Try not to Buy All the Home You Can ‘Afford’

This one is really important. 

For example, the lower payments that come with having a smaller mortgage can be beneficial when you’re getting ready to start a family or saving for retirement. Meanwhile, a smaller home can mean less money needed for repairs, utilities, and upkeep.

Regardless, you should only buy as much home as you need and only spend as much as you’re comfortable with. Who cares what the bank says you can afford?

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Arlene Mendez

The Mendez Group's extensive knowledge and experience allow them to handle a wide range of clients and situations. Whether their clients are looking for a home for the very first time or they are sea....

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