Buying your first home is exciting but also a big decision. Check out these recommendations to help prepare you for buying your first home.
SET A GOAL AMOUNT FOR YOUR DOWN PAYMENT AND TRACK YOUR PROGRESS.
A healthy down payment is 20% of the purchase price but some first-time home buyer programs accept as little as 3.5% of the purchase price if you meet the eligibility requirements. Set a goal amount and track your savings for a down payment to visually see your progress which will help motivate you.
GET YOUR CREDIT IN SHAPE
Although there are loan programs that accept lower credit scores, your score can still affect your loan terms and interest rate. Before applying for a loan, make sure there are no errors that could be affecting your credit score and try to pay down any debts. After you apply for a mortgage, do not open any new credit accounts such as a credit card or car loan until your home loan closes.
RESEARCH WHAT MORTGAGE OPTIONS AND ASSISTANCE PROGRAMS BEST FIT YOUR NEEDS
There are multiple types of mortgage options and down payment assistance programs to help first time home buyers. Below are a few resources to check out:
OBTAIN A PRE-APPROVAL LETTER
When you’re close to buying a home, request a pre-approval letter from your lender showing how much they are willing to lend you. Having the letter will make you look like a serious buyer which can better your chances of the seller accepting your offer.
CHOOSE THE RIGHT TYPE OF PROPERTY
Owning a home requires maintenance such as snowplowing and yard care. If you’re looking for less maintenance and more amenities, buying a condo may be a better fit for you.
HIRE THE RIGHT REAL ESTATE AGENT
When buying your first home, working with professional real estate agent to guide you through the home buying processes is indispensable. You will want to hire someone that is knowledgeable about the area and is highly skilled. If you’re looking to buy a home in Oconomowoc or the Lake Country Area, our team of agents have the expertise to help you purchase your first home with confidence. Check out what others have to say about working with us.
SEARCH FOR PROPERTIES THAT COST LESS THAN WHAT YOU’RE APPROVED FOR
In today’s market, there is high competition for homes under $300,000. Homes for sale in Oconomowoc and the Lake Country area in this price range are exceedingly limited, so it is common for sellers in these localities to receive multiple offers. By shopping for homes under budget, you can leave wiggle room for bidding.
BUDGET FOR CLOSING COSTS
Besides the purchase price, there are additional closing cost expenses. Examples of these expenses include homeowner’s insurance, home inspections, title fees, and closing fees. Closing costs typically range between 2-5% of the purchase price.