“It Could Be Scary to Be a First Time Homebuyer”
In honor of Halloween, I decided to look at the SCARY issues facing first time homebuyers. Since the housing bubble burst, opportunities for first time homebuyers have increased as property prices have fallen. Where do you start?
First, have you run your credit report? Sites like Freecreditreport.com try to sell you credit monitoring programs, but you can run a free credit report through various agencies including a service offered by the FTC. With banks raising the minimum credit scores required for a mortgage, you may not qualify right away, but a good mortgage banker should be able to guide you through the process of cleaning up your credit.
If your credit is good and you’ve been pre-approved for a mortgage (you’ve submitted income documentation to the underwriters via your mortgage banker), you have to decide how much you are comfortable spending. I believe it’s just as important to find a home you can afford to keep, as it is to find a home you can afford to buy. No one wants to be house poor, owning a Mc Mansion without a stick of furniture in the house or the freedom to feed and entertain yourself.
Trying to make the stretch into a more expensive town? Consider a fixer upper in a good neighborhood. Are you planning an addition to your target property? Consult with an architect first, to decide feasibility, and cost.
Besides good credit, a letter of pre approval from the bank, and an idea of where you want to live, what else do you need? A knowledgable mortgage banker is a necessity as is a proactive agent to negotiate on your behalf.
My next installment will focus on what happens after you go to contract, but in the meantime, should you want a complimentary, no obligation consultation to decide if now is the right time to buy, contact me and let’s start a dialogue.
- Treasury opens the door for homebuyers’ return to risk (thetimes.co.uk)
- Simplicity is a Must for First-Time Homebuyers (prweb.com)
- FICO Mortgage Score – What You Need to Know (lexingtonlaw.com)
- Insight on today’s first time homebuyers (gbsheltermortgageconnect.wordpress.com)