While it’s naturally an exciting time in your life, it is also important that you not get carried away and find yourself biting off more than you can chew. However, if you plan methodically, you can soon find yourself in the home of your dreams.
If the following things are in your favor, you’re ready to buy your first home.
Little or No Debt
If you have finally paid off your credit cards, student loans, or other types of debt, there is no doubt you are in a great position to purchase your first home.
This makes you much more attractive to mortgage lenders. Plus the extra money you now have will help pay the other expenses associated with your home, such as property taxes and insurance.
Great Credit Score
As you have paid off your debt, your credit score has improved dramatically. Should you now have a credit score that is over 720, don’t hesitate to apply for a mortgage.
Even though interest rates have risen as of late, having a high credit score will still allow you to get a loan with excellent terms. If you can get pre-approved for a mortgage, you can begin looking at homes for sale that fit into your budget.
You Have a Down Payment
After saving as much money as possible to buy your home, you now find you have a down payment of at least 10 percent of your home’s asking price. Once you reach the 10 percent threshold, you are in the perfect position to buy a home.
If possible, try to do even better than 10 percent, and instead shoot for a down payment of 15-20 percent.
You Have a Steady Job
You now have a job that you feel is steady and will be a long-term employment situation. If so, this will make you a much more attractive candidate to mortgage lenders.
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When you apply for a loan, the lender will likely check your salary. They may also contact your employer to verify other facts about your employment. If all goes well, your lender will soon be approving your application.
As the biggest investment you will likely make during your lifetime, it is vital you take care of these and other details prior to buying your first home. Once your credit score is high, your debt is low, and you have a steady job, it won’t be long until you are a first-time homebuyer.
Image Credit: want to buy your first home by twenty20.com
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