Before Buying A House


It's spring time, which means that it's home buying season! This is more than likely the biggest purchase that you will ever make, so you can never be too prepared. Especially if you're a first time home buyer, there are a few things that you need to know before signing any papers.

photo of a country home


1. You want to save the full 20% down payment.

There are ways to buy a home with little to no down payment, but experts recommend putting a full 20% down for a variety of reasons. First,you're drastically increasing your monthly mortgage payment. Start saving the minute you decide you want to buy a house, whether in the near or distant future. Second, it requires you to actually think about your decision. Although buying a house is exciting and you want to get started now, there's a lot that goes into it. Be patient and take the time to learn everything you need to know about home buying.

2. You need to shop around for a loan.

Don't take the first loan offer that you find. It may be exciting that you qualify for a loan that offers to cover the full amount of the home, but (as before mentioned) your monthly payment is likely to be much higher than it needs to be. Save for your down payment and shop around for a loan with a great interest rate that covers only what you need it to cover.

3. You need a strong credit score.

Get your finances in order long before you actually plan to buy your house. In order to qualify for a good mortgage, you're most likely going to need a credit score of 700 or higher, with 720 or 750 being the minimum for a great 5% interest loan. Build your credit for a couple of years before you buy to give yourself the best chance of qualifying for the best loan.

4. You don't need to buy NOW.

You may feel pressured to make an offer as soon as possible when you think you've found the house. Relax and really take your time shopping. Don't put yourself in a situation where there's a possibility that you'll have to move out of your current living situation before you own a home.Give yourself plenty of time to shop and find the perfect house that you'll love living in.

If you're ready to buy or are shopping around for home loan,then check out how we can help you with our home mortgage loans.