Food for Thought: Financing For Your First House
Ready to buy your first house? This can be a very exciting event, but financing your home can be a daunting experience. Don’t become overwhelmed in all the paperwork and minute details of buying your first house. When you use some good tips and common sense, financing your new home doesn’t have to be such a hassle. There are some realities that a potential home buyer must confront in order to be sure they are prepared for their new home and finances. Take a look at these tips and get ready to finance your own way into your new nest.
Get Your Finances In Order
First, you should make sure you have the financial stability in order to afford home payments. Make sure that your credit is in good shape, and take care of any damage previously done. Be sure to pay down your debts, as debt that you carry on your credit cards will limit what you qualify for from a lender. Check with LowVARates.com to see what you might qualify for. Surveys have found that some successful buyers did not know they’re credit score when they went house shopping. Having enough money set aside to make a down payment is a key part of being prepared to purchase a home. Remember that it is best to not put all of your money in the down payment, because you must be prepared for other fees or unexpected expenses that often arise after closing. Once you have all your prior finances in order the rest of the steps will be a lot easier.
Costs
When house shopping, you should be realistic about costs. However much you make, don’t go for a home that will eat up most of your income each month with your mortgage payment. Buying a home means not only paying mortgage and principle payments, but covering insurance, maintenance, and real estate taxes. First-time home buyers often make the mistake of not leaving themselves with enough money to spare on these expenses. Find an easy middle ground you will be able to afford each month, and make sure to set aside an emergency money fund for maintenance and repair costs whenever possible. The best way to get started on your costs is to start saving early and be prepared for any kind of future finances.
Find The Right Mortgage
Selecting the right mortgage can be stressful but it is well worth it. After educating yourself on your financial situation, get your documentation together and find a lender you can trust. Typically, lenders will request key documents such as two recent pay stubs, W-2 forms from the previous two years, tax returns, and the last two months of bank statements with every page included, even the pages that are blank. Find a mortgage that will fit into your current budget and that you can work with in the years to come. If you can pack this all away into a binder and keep it with you whenever you go to see your bank or real estate agent before your purchase it made.
Buying your first house can be a long, and sometimes stressful process, but in the end it should be an exciting and life-changing experience. Take the time to educate yourself on your own financial situation, as well as the processes and terminology that associated with home buying. Look at available options for mortgages and loans. If you are a veteran looking to buy a home, apply for low VA rates, and don’t forget other financial helps you might be qualified for.
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Category: Mortgage
