Pittsfield, MA -- (SBWIRE) -- 07/01/2013 -- Are you one of those people who is looking forward to the prospect of buying your first home? It is definitely a huge transition to go from renting to home-ownership, especially without having some tips for buying your first home. This is a very emotional time, so you should not attempt to forgo any kind of education that may be helpful while you embark on this new journey. The past few years have shown real estate to be on the decline price-wise thus making it a buyer’s market. How long the trend will continue is something on which we can only speculate.
What should you do before you even think about buying your first home? One of the most important tips for buying a first home is to make sure you check your credit score. Lenders base your qualifications for a mortgage on many different factors that include your credit score, debt-to-income ratio, income and assets just to name a few. Borrowers who do not have a credit score of at least 620 may not qualify at all and may need to take steps to improve their credit scores.
Want To Buy First Home? Get Started For Buying First Home With Bad Credit!!
Even though the lender will tell you how much they are willing to loan you, as a potential homeowner you should take some time to set a budget for yourself. You have to keep in mind there are things you will have to pay for as a homeowner that were not necessary when you were renting. Keeping this in mind you may find you do not feel comfortable with the lender’s assessment of how much you can afford. If you would feel comfortable with lower monthly payments that the lender determines you qualify for, then you should choose what makes you comfortable.
This is the time you need to stop spending so much money and start saving instead. One good method for doing this is to get an estimate of your mortgage payment and begin saving the difference between your current rent and your new mortgage payment.
Probably one of the most important tips on buying your first home is to remember not to make any new major purchases once you begin looking for a home. This will have a detrimental effect on your credit score, so you want to try to get out of as much debt as possible up until the time you actually arrive at the settlement table to finalize your new purchase.
While you are looking for that “perfect home” you need to keep your budget in mind. Do not look at homes that you know are out of your price range hoping you might qualify or that the lender will make an “exception.” Make your first home purchase an exhilarating experience by following the above tips and even creating some of your own.
www.real-estate-yogi.com an online marketing service located in Pittsfield, Massachusetts, reminds consumers if a deal seems too good to be true, it usually is, so use some common sense and avoid scams.