Purchasing a home is likely one of (if not the) biggest investment of your life. You want to make sure to do it right. You want to make sure you are ready, and you definitely want to make sure that there are no surprises.
Educating yourself on the process prior to the journey is always a great way to assure success. Take the time to invest in your future, and read through this brief overview, highlighting a few useful ways to prepare financially for the event of purchasing your very first home.
Become very familiar with your credit report
Before ever investing a moment of your time or effort into purchasing a home, you will want to thoroughly investigate your credit report. Once a year, you are afforded a free look into all the different agencies. You will want to take advantage of that opportunity.
If there are any discrepancies between reports, or any extra charges that you know you did not accrue, it is your responsibility to dispute those blemishes. You will want a clean credit history before beginning the home search.
Become extremely familiar with your finances
The next best step to take before beginning the home-buying journey is to become familiar with every aspect of your finances. If there are any hidden debts and struggles, it is wise to work out the kinks in the budget before you try to purchase a home.
You have to prepare yourself for transparency, because that is what the bank will require of you during the process of mortgage approval. If you truly cannot afford to buy a home, the bank will know.
Save money for a healthy down payment
After you get your finances squared away, you will want to begin saving money for a healthy down payment on your new home. It is good to have at least 10 to 15 percent of the total cost of the home up front. You will save yourself a whole lot of disappointment by not skipping this step.
Go mortgage shopping to find the best rates
The next step if mortgage shopping. You will want to find the lending agency that best fits your needs. There are a wide array of mortgage loan options to choose from, and a lack of knowledge could cheat you out of the best deal.
Begin the house hunt
Here is where the fun truly begins. House hunting for your first home purchase is exciting. Begin by finding the neighborhood that best suites your domestic needs, and move on from there.
Once you have found a list of promising properties, start the physical investigation. Attending an open house is a great way to view a home with a somewhat lower pressure level.