If you are interested in purchasing your first home, it can be very exciting, but the process can sometimes feel overwhelming because there are so many factors involved. Purchasing a home takes a great deal of research and preparation, and it can help to connect with someone who knows the process and can guide you on your way. The specialists at Lucey Mortgage Corporation can help get you into your dream home in Mount Pleasant, South Carolina. Read on to learn the 5 Tips for First-Time Home Buyers.
1. Prepare Your Finances and Credit
Begin saving up your money when you know you are going to buy a home, because it is an expensive endeavor. It is important to pay down any existing debt you have so that you will be able to afford unforeseen home expenses, and decreasing your debt will also help improve your credit score. Make sure your credit is in order as well, because your credit score will impact your mortgage rates.
2. Get Loan Preapproval
When you are ready to start shopping for a home, it is advantageous to get preapproved for a mortgage. Loan preapproval means that a lender is willing to lend you a certain amount of money for a mortgage, and it demonstrates to sellers that you are seriously interested in purchasing the home. It will also help you better understand the amount of loan you can obtain, and the type of house you can afford.
3. Selecting the Best Mortgage Options
There are a wide range of mortgage types that have different eligibility and down payment requirements. Fortunately, there are many programs intended to assist a first time home buyer, including:
- Conventional loans – these are not insured by the government, but do offer down payments as low as 3%
- FHA loans – these are backed by the federal government and have down payments for as low as 3.5%
- VA loans – these are insured by the government, and intended for military veterans and service people and do not require a down payment
4. Find the Neighborhood and Type of Home That Suits Your Needs
You will want to evaluate your lifestyle and your budget, and choose the right type of home in the most suitable location that fits your lifestyle. Make sure that the neighborhood and the environment is the right fit for you. Also, take into account the type of home you want to be living in in the future. Do you want a townhome, or are you thinking about a larger house because you want to have a family later on?
5. Learn About the Associated Costs
Be sure to prepare for the associated costs of owning a home, and have enough funds saved for a down payment, closing costs, possible HOA fees, move-in expenses, and maintenance and upkeep of the home. It is important to note that the larger the down payment you are able to afford, the lower your monthly mortgage payments will be.
If you are ready to buy your first home in Mount Pleasant, South Carolina, contact Lucey Mortgage Corporation today to help get you started.