Buying your first home is a major undertaking, and while it’s exciting, it should also be approached with caution. Fortunately, our team at Harbor Mortgage Company works extensively with first-time home buyers, and we can help make this process as easy as possible.
Here are some of our top tips for the first-time home buyer:
- Calculate Your Costs. Our first tip for first-time home buyers is to calculate all your move-in costs — not just your down payment — and factor the total amount into your plans. You’ll need to make a down payment on the property, usually between 10% and 20% of the total value of the home. In addition, you’ll need to cover closing costs, and you’ll need to be prepared to pay for moving expenses as well.
- Polish Your Credit. Our second tip for the first-time home buyer is to keep your credit history as clean as possible. To do this, pay all your bills on time, and keep all your credit card balances as low as possible. Ideally, spend under 25% of the credit limit and pay the balance off every month. We also advise against closing any of your current credit accounts when preparing to buy a house, as doing this will decrease the amount of available credit you have and therefore increase the total credit amount you are using, which will make your credit look worse.
- Research Your Options. Our third tip for the first-time home buyer is to research all your mortgage options. You don’t have to settle for a conventional mortgage, as there are other choices that might work better for your needs. For example, you might be able to get a home loan through the Federal Housing Administration, or through the Department of Veterans Affairs if you served in the armed forces.