Beginning the process of purchasing your first home can be incredibly overwhelming. There are so many steps and pieces to the equation that it is difficult to know where to begin! Concord Mortgage Group wants to help take the fear out of the experience so that you can find joy in this milestone. Here are 5 tips to help you feel grounded as you step into home buying!
Start Saving For A Down Payment
While it is very common to put down 20%, many lenders permit much less. Play around with a down payment calculator to help you decide on an achievable goal. Then, brainstorm ways to help you reach that goal. Qapital is an amazing app for your phone that helps you to save for all types of goals. You can set percentage amounts, monthly chunks, or even a ‘round up rule’ which rounds up every purchase you make to the nearest $1 and puts that money in a savings account.
Check Your Credit
When you are taking out a mortgage loan, your credit score is one of the key factors in determining your interest rate and loan terms. It is very easy to check and many websites offer free credit reports. Here is one from Nerd Wallet.
Determine How Much Home You Can Afford
It can be easy to get carried away envisioning your dream home. All of that space and those beautiful finishes add up, so it is important to find out exactly how much home you can afford before you start looking and fall in love with a home. Use a tool like this calculator to save yourself some heartbreak and help you plan your finances.
Get A Loan Estimate
A 30 year, fixed rate mortgage might sound like a given as it seems to be the one most commonly thrown around, but there are other options out there. This Loan estimate tool from Ownium will help you to calculate your monthly payments to see how much you would be able to afford. Larger monthly payments will mean a lower interest rate and might save you money overall. It is very important to find out just exactly how much you can afford to spend each month on your mortgage.
Set Aside Money For After Move-In
You have gotten approved for your mortgage, you have paid your closing costs, and now you have the keys. You open the door to look around… at an empty house! Buying a home is such an exciting new journey, you will want to purchase a rug here and a throw pillow there to make the whole experience special and comfortable. Make sure to keep some money set aside for furniture, decorative items, and also for some unexpected events such as a sink repair or a dented door frame from the movers!