From Renter to Homeowner: Tips for First-Time Home Buyers
Making the transition from renter to homeowner is going to be an exciting process, but you need to keep an eye out for potential pitfalls. Seemingly minor issues can quickly become expensive problems if you aren’t careful. Here are a handful of tips and tricks that first-time buyers can use to find the perfect home at a great price.
Check Your Credit Immediately
One of the most common mistakes that first-time buyers make is assuming that their credit is perfectly fine. Even if you haven’t defaulted on any loans, your credit score might not be very high. Dozens of different factors are taken into consideration when determining an individual’s credit score including their salary, age, assets, available credit, and used credit. Bringing your credit score up by just a few points before applying for your home loan could save you thousands.
Think Twice before Accepting a Job Offer
Even if you end up making more money, changing jobs just before going from renter to homeowner isn’t always a good idea. When a mortgage company is examining your credit history, one of the most important pieces of data that they are going to look at is your work history. An individual might be denied a loan if they move from job to job every few months. That being said, accepting a job that has a higher salary and better benefits will most likely help you in the long run even if you need to rent for a few more months.
Pre-Qualify for a Mortgage
A seller will almost always want to get rid of their home as quickly as possible, and the best way to do that is to accept an offer from a buyer who has already qualified for a loan. Those who pre-qualify for a loan know exactly how big of an offer they can make. Some of the other expenses that you should take into consideration before making an offer include home insurance premiums, the annual property tax, and basic maintenance.
Work with a Professional
Going from renter to homeowner without a real estate agent might seem like a good way to save some money, but these specialists can be an invaluable resource. Once you have a price range and general location, they will give you a list of all the homes that meet your criteria. They will also be able to help you with issues such as scheduling home inspections, making offers, and filing the proper paperwork. Your real estate agent is going to save you countless hours and help you avoid common mistakes.
Going From Renter To Homeowner Is A Big Step
Buying your first home could be one of the biggest decisions you ever make, and you want to be absolutely sure that you find the perfect piece of property at a fair price. With a little bit of perseverance and some professional help, you are going to be holding the keys to your dream home before you know it.