As the market steadily improves, people are ready to buy a home. Before you make your first move, there are a few things to think about. Here are three things to consider when you’re preparing to buy your first home.
1. How much you can afford
There are a number of first-time homebuyer offers. Even still, you’ll need savings for a down payment and other fees. Typically, your down payment is between 3.5% to 20%. If you are able to save up 20% down we think that is a solid move for your long term finances. You should also factor in closing costs, home inspection fees, utility adjustments, mortgage tax, etc. Figure out your home shopping budget based on what you have available and what you’ll be comfortable with each month.
2. Check your credit
Your credit has a huge influence on home buying. Approval, interest rates, and monthly payments are all affected by your credit score. Begin monitoring your credit and try to improve it at least six months before you plan to apply for a mortgage. Also, avoid opening any new credit cards or making big purchases before you apply. By big purchases we mean anything that requires a credit check or loan.
3. Get pre-approved
Once you have everything in order, begin shopping around for a mortgage. It’s important to have this ready before you find your dream home. Decide on the best lender for you and then get pre-approved. This will also show that you’re a serious buyer, and make it more likely that a seller will choose you over someone who doesn’t have their financials in order. If you need help finding the lender who is the right fit for you, give us a call, we have long standing relationships with many lenders in our area.
When you are ready to view homes for sale in Cheyenne and Laramie County visit our website. Once you register you will be connected with a REALTOR, able to communicate through the website by favoriting homes and calculating a mortgage.