There are a lot of factors that have to come into play when looking to buy your first home.
When it comes to purchasing your first home, it is imperative to make sure that your finances are in the right position to both purchase a home, and for this purchase to fit into your long term goals.
Checking your credit score is one of the biggest action items in determining your eligibility for a mortgage.
One of the best free places to see where your credit stands is AnnualCreditReport.com. Look for unpaid accounts, mistakes, collection accounts, etc. It's important to note that your credit utilization ratio which is based on the amount of credit you use relative to your available limit.
Ideally, the lower the utilization rate, the higher your credit score will be.
First-time homebuyers should have a lot of credit available, with a low credit utilization ratio.
Other factors that may come into play are the purpose behind buying a home. It could be just for the purpose of not 'wasting' money on rent payments, when you could in fact put money back into your own pocket for the future. Or it could just be for the feelings of independence in enjoying being your own landlord, and owning your own home.
One important factor to take into consideration is the type of home that best suits your needs. Homes range from townhouses, a condo, multi-family buildings, a single-family home, or even a luxury property. Each has their own advantages. For example, townhouses offer security in event of damaging weather, and are generally more structurally stable.
Comparatively single-family homes may offer more privacy and a sense of independence. Condos are more easily available and preferred by those who live in crowded cities, however with this given, they are also more expensive per square foot. Though people who enjoy the urban lifestyle may prefer to choose this. Factors such as familial status and children also greatly affect the preferred location of your first home.
After you have a firm grasp on the type of home you're looking for, consider how much mortgage you qualify for. Lender's can be hard to deal with. For example, you may believe you can afford a $500,000 home, but a lender may only be willing to lend for a $350,000 home. The biggest factors when it comes to this is your cash flow, debt, and work history.
A Bold real estate agent will be a great option when it comes to answering all the questions you may have when it comes to possibly the biggest purchase made in your life. They will also speed up the paperwork, work on the price range, and assist in getting loans, and negotiating. Contact an experienced local real estate agent here.