Do you remember buying your first home? I recall that it was a very exciting yet stressful time. I had only been married for a few years. I was literally tired of paying the rent. A lot of people told us that we could get a house for less than our rent which is a total eye-opener. After we got our first house, we did our darndest to not have to rent again. Just having something that was our own was very gratifying.
Craig Middleton writes on how to make that first home possible.
Buying a home is an exciting life event that most people never forget. If you do not know what you are doing you can make some mistakes that can have major consequences. But with the right amount of information and a good head on your shoulders you will not regret your first home purchase.
Set yourself up for success by using these five tips when buying a house:
Repair and Build Your Credit
This is a step that has to be done before you start negotiating rates and looking at houses. If you have a lot of debt to pay off you will need to start paying it off or find some way to repair your credit. You want a good credit score because that will allow you to get better rates on a mortgage.
If you do not own a credit card you will want to get a credit card. You can start out with a nice credit card for beginners that will not cost you anything. All you have to do is pay off the credit card monthly. Use it for purchases that you would normally make such as gas and rent. Instead of using your debit card or cash use your credit card and pay it off on time.
To buy a house most people need to take out a mortgage, which is a loan specifically meant to buy a house. Most people will not be able to pay 200,000 plus dollars in one payment so they take out a mortgage and pay that off throughout the years.
You are going to need some kind of down payment to get the mortgage that you want. Typically anywhere from a 15 to 20 percent down payment is what banks and lenders are looking for when issuing a mortgage. There are zero percent down mortgages but, as with any loans, there are pros and cons to them.
Find a Realtor
You do not have to have a realtor but a lot of people do not know a lot about home buying so they hire a real estate agent. There are perks of using a real estate agent such as not having to deal with a lot of the paperwork. Real estate agents are great if you are too busy to do all of the nitty gritty work of buying a house. They are also great if you are brand new and not really sure what to do.
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