For many people, despite the benefits, all of the responsibilities of homeownership can bring about many fears. From the stress of finding just the right home to figuring out your finances, to closing, and dealing with the responsibilities of being a new homeowner, there’s a lot to consider. While it can be overwhelming, it doesn’t need to be scary! Escape the horror stories that homebuyers often tell, by following these tips from the experts below.
Financials
Buying a house is a big financial investment. For most, it means going into a fair amount of debt. If you’re a first-time homebuyer, chances are, you either just paid off your student debt or are still working towards paying off your loans. With student loans, it’s understandable that people look closely at their next financial moves. This leaves many young people thinking that renting is their only option. However, this certainly doesn’t have to be the case. Working with a financial advisor or researching debt management and consolidation can help you to best tackle your financial situation.
Credit Score
It’s inevitable that your credit score will play a big role in mortgage loan approval for your home. Typically, most loans will require a credit score of 620 or higher. However, there are certain types such as VA loans that may be a bit more flexible. practice good financial habits; Pay your bills on time, keep balances low, and limit how often you apply for new credit. Over time, your credit score will rise, and you’ll be able to be approved for mortgages more easily to get your dream home!
Not Budgeting Enough For All the Fees
There’s no doubt that buying a home comes with a lot of fees, and it’s important to be aware of all of them upfront. Between down payments, closing costs, property taxes, and beyond, it all adds up. The best way to ensure you’re budgeting for all these costs appropriately is to sit down with your REALTOR® and discuss these costs upfront. Make sure you’re aware of everything that you’ll be expected to pay for, so there are no surprises or hidden fees when it comes to closing time. Eliminate your stress by setting aside the money when you start your home search.
You’ll Get Outbid
Finding your dream home can certainly be a challenge. Finding a space that accommodates all your needs from location to rooms, price, and beyond, can be like finding a needle in a haystack. Even worse, imagine finding your dream home and then being outbid? This is a very realistic fear, especially in today’s highly competitive market. The best way to combat this fear is to work closely with a real estate professional and provide an attractive offer. A REALTOR® will be able to help you craft the perfect offer to get your dream home before the others and do all the heavy lifting for you from paperwork to negotiating, to closing.