3 Important Financial Factors: Buying Your First Home.

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Buying a home can be a taxing affair. It can take a toll on your mental stasis, as well as your wallet. But doing your research will go quite a long way in reducing your anxiety. 

3 important financial factors to consider

1. Credit Report

It goes without saying that you credit is one of the most important factors involving the decision to grant you a mortgage. Your credit report is, after all, a complete record of your borrowing and repayment history with credit card companies and other lenders. Mortgage brokers will be very discerning when it comes to this document, so a positive credit report is a must. learn how to improve your credit score and be on your way into your new home

2. Credit Cards

In tandem with your credit report and score, lenders will look at what they call your “debt to income ratio,” or the amount of money you make versus the amount of debt you have.

Many experts agree that if you are planning on relocating, it’s best that in the months leading up to you securing a mortgage that you get a handle on your credit card payments so that it shows positive on your report. Don’t cancel any cards that are in good standing and show established credit. Also, do not apply for any new cards three to six months before applying for a mortgage. Eliminate all red flags.

3. Employment

If you are trying to secure a mortgage, and you recently accepted a new job, be sure you are prepared to show proof of your new income. The length and overall terms of your employment are always in question when large sums of money are being discussed. So whether you are self-employed, work several jobs, or even relocated for work, providing evidence of your income through pay stubs, bank statements, and tax returns is essential. Lenders want proof that you can pay back the money you borrow.

First Time Home Buyers: Be in the Know

1. The purchase price is not the only cost of home ownership.

With many fees and expenses involved with home ownership, it doesn’t end with the purchase price. As a home buyer you have to understand on top of your monthly mortgage payment, there are many other fees and expenses to owning a home that first time home buyers overlook. When your going over the monthly budget and expenses keep these in mind. Some might be included in your monthly mortgage payment and some may not.

  • Home owners insurance
  • Property taxes
  • Utilities (heating costs) (electric bill) (water bill) (condo fees)(garbage removal)
  • Home maintenance

2. Getting Pre-approved for a loan can help with your budgeting and home buying power.

A pre-approval is one of the most important steps for a first time home buyer. This will help you understand how much home you can afford with your current credit rating, income and expenses, and other factors. The pre-approval also shows home sellers that you are a serious buyer and able to afford their home. It gives a confidence to the seller and could set you apart from other home buyers that may not be pre-approved yet. The best part of the pre-approval process is it’s fast, easy and free. Contact us to put you in touch with 1 of our veteran mortgage officers who can get the ball rolling for a pre-approval.

3. There is no such thing as the perfect home.

Most first time home buyers think they’re going to find the perfect home, with the perfect upgrades, in the perfect neighborhood. Unfortunately most home buyers have a huge list of wants that most homes cannot live up to or they can afford. The trick is to make a home wish list that has everything that you want and desire with out holding it 100% accountable. It is also wise to separate your wants and needs. Understand that you might not find the perfect home within your budget. Here are a few quick bullet points on things to know that will help you prioritize.

  • You cannot change the location of the home.
  • You usually can change the floor plan.
  • You can update kitchen and baths, along with many other things.

Overlook paint color, outdated light fixtures,  and grandma’s wallpaper because these are the most simple and inexpensive updates that many first time home buyers take on as projects. If your up for the challenge, buying an outdated home can actually be beneficial. You are going to get in the home at a cheaper price and you will be able to customize the home to your liking. Unless your buying new construction, you can expect to do at least some updating.

4. The economy would love for you to buy a home.

First time home buyers stimulate a lot of local economic activity and growth. Therefore banks and the government are constantly changing rules, credits, loan programs and giving general help geared toward getting a first time home buyer in the home of their dreams. The best resource to see the latest loan programs and local government help is talking to an experienced mortgage officer to see what is available and would work best for you.

Questions to ask your loan officer

  • Do no money down programs exist?
  • What government back programs are available?
  • What are the guideline and income limits for programs available?

First Time Home Buyers: Getting Started

Defining Your Ideal Home  and Neighborhood

The property you buy will be much more than a house; it will be
your home. The following questions can help you describe the things
that are most important to you in your ideal home and neighborhood.

Home Buyer Checklist

The Home Buying Process usually includes many of the following elements. Understand the Checklist and steps you will need to take to go from a CT Home Browser to a Connecticut Home Buyer.

Home Buying Resources

Advanced Home Searching Toolssearch icon page veiw
Browse like a Pro. Feature rich Home Searching tools that are easy to Use. Includes easy glide parameters,distinct mapping, and much more. Make sure you set up an account while your there and receive email updates with the newest listings that hit the market in your search criteria.

Mortgage Calculator
Check out are 19 in 1 Mortgage calculator. calculatorMany different detailed calculations to choose from that you do not want to miss out on. Feature rich with calculations such as “rent vs. buy” “affordability calculator” “how much income do I need to qualify” along with many more. Its a great tool to start understand how much home you can afford and exact payments,along with tax benefits and different payoff scenarios for credit cards and other loans.

 

Check out articles we update regularly regarding helpful Home Buying Tips.

Also feel free to Contact Me anytime to answer any questions you may have and get the home buying process started.

 

 

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Michelle Manter Giglietti

Owner~Realtor at Manter Realty Group of Keller Williams
Top Producing Realtor and recognized blogger. In her free time you can hear her screaming fore at the local golf course,or catch her at home enjoying fresh cooking and a glass of wine with her husband and favorite 6 pound Morkie named Pedro.
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