When it comes to first-time home buyers, the entire real estate search can be a nerve-wracking experience. In fact, since a first home is probably the biggest purchase ever made, knowing the details of the process and what to look out for can be extremely helpful and important. Here are some incredibly helpful tips for the first-time home buyer.
Start Saving for the Down Payment
The earlier you can start the better. In fact, it can be quite common to expect to put twenty percent (20%) down on a home. However, many lenders are beginning to permit much less, but putting less down will only increase your mortgage costs creating a hefty monthly payment.
How Much Can You Afford
Living within our means is not often the easiest thing to do. However, before you start looking for that dream home it’ necessary to be realistic about what exactly you can afford.
Always Check Your Credit
If you need a loan to pay for your home, the mortgage company will always run a credit check before approving you. If you have poor credit you may end up getting completely and utterly rejected. Therefore, you’ll want to check your credit before you even begin the process of looking for a home. Dispute any potential errors that could be dragging your credit down and also be sure to look for any opportunities to improve your credit like making a dent in any potential outstanding debts.
Hit the Pause Button
Ideally, you’ll already have some credit before buying a home. Any time you open a new credit account, whether it’s for an auto loan or to get a new credit card, the lender will always run a credit check. The more credit checks that are being run decreases your credit score naturally. As a result, hold-off on getting that credit card until after your home buying process has been completed to keep your score from dipping.
A Title Insurance Company You Can Trust: Colony Title Associates
At Colony Title, we will help you through the process of getting your property’s title and help you avoid the pitfalls of hidden costs while you buy and sell your home. We are also well trained in identifying any and all errors in public records and helping you resolve them. We specialize in real estate title insurance in both Maryland and Washington, D.C., and we will perform an expert title search, check through all past documentation, and examine records for any fraud or forgery. For more information on how we can get you into the home of your dreams, contact us online or give us a call at (410) 884-1160. To get more updates on housing markets and how to get into your home, follow us on Facebook, Twitter, LinkedIn, and Google+.