Spring and summer are typically busy times of the year for buying homes. For the first time buyer, the prospect of getting out of the renting world and actually having a home is exciting but also a little overwhelming. To make sure your experience is a positive one, we have pulled some important tips together for you.
For starters, order a copy of your current credit report from the three main reporting agencies, which include TransUnion, Experian, and Equifax. The majority of credit reports contain some type of inaccurate information. Whether wrong address, incorrect account information, or having another person’s information on your report, without having these items corrected, you could be faced with a difficult, uphill battle when it comes to buying a home.
Lenders are going to run a copy of your credit report to determine if you are creditworthy. As a part of this process, your credit score will be checked. Scores of 700 to 900 are considered good risks while those below 500 show that you might be a high risk factor. Each item that is inaccurate on your report will deduct points, bringing your overall score down. Therefore, checking your report is crucial to the success of you becoming a first time homebuyer.
You might also think about taking a financial class, one that focuses on homeownership. As a part of these classes, you would gain valuable information associated with associated finances, processes, warranties, insurance, maintenance, updates, and much more. Most people who have undergone this type of training will tell you it was the best decision they ever made, allowing them to make wise decisions when it comes time to buy a home.
Finally, you want to find a reputable real estate agent, someone who will work with you to ensure you find the right house and one within your budget. A good real estate agent should be patient and willing to show you how ever many homes needed until you find what suits your needs best. For some people, the process is quick but for others, it could take months. Your real estate agent should keep an eye open for good options but also guide you through the process, answer questions willingly, and introduce you to an excellent lender.