• Latest arts and entertainment news

5 Useful Tips For Buying Your First Home
by richard

One of the best feelings as an adult is when you leave the rental style life behind you. On average, first-time home buyers are at around 33 years of age in the USA. Though this age is relatively young for a critical life choice such as this, buying a home at any age can still be equally time-consuming and stressful.

To finally put your life as a tenant behind you, here are some useful tips to help you be prepared for your first home purchase.

Find Out Your Credit Score

Buying a home may require you to take a loan to be able to pay the mortgage, and you cannot do this smoothly if you have a hanging credit score. Work on your score and address the negative elements before you put in a downpayment on your house. A credit score of 740 and above is considered the ideal mortgage range.

If you have a score lower than this, do not worry. You can still qualify for loan approval. However, this would cause you to pay for a higher APR or also called the Annual Percentage Rate. Settle your credit card bills and outstanding loans on time. That way, you keep improving your credit score. Remember, the lower your APR is, the cheaper monthly mortgage payments will be.

Save Money Early On

One of the first things an adult must do to become financially stable is to open a savings account and actually put some money in it. This means a percentage of your monthly paycheck should always end up to your bank to help you prepare for the big day when purchasing your first house.

Every buyer should have at least 10 percent of the asking price of the property in their bank accounts. But if you belong to the low-income buyers, do not feel discouraged. There are mortgage programs that allow you to acquire your first home with a lower down payment. All you have to prepare for is to qualify for these mortgage programs while continuously saving some money.

Work With An Experience Realtor

An experienced realtor will assist you in finding the perfect rate for your house loan. Moreover, he or she will also help you in sailing through the process as smoothly as possible. In Chicago the Kale Realty company is such a reputable broker with access to a large inventory of real estates offers in all price ranges. For some, buying their first property would mean living in it in the next months or so while some buyers also prefer to purchase property while the market is underpriced for the purpose of gaining more income. People who choose the latter allow themselves a few more years to earn and save extra money for a bigger home in the future.

For example, more people are buying properties in Chicago for a bargain as the prices are down by 20% from the top due to the economic struggle since 2008. These buyers can then rent out the place for cash income and use the property as a form of investment until the owners choose to either move to the property in a few short years or sell it again once the economy in Chicago, Illinois starts to improve.

Keep Your Finances In Check

The home buying process can be a bit cumbersome, especially when you want to purchase a property in a competitive neighborhood. To help you stay financially stable for the incoming expenses, you have to avoid any significant purchases. Some examples here are purchasing fancy furniture, taking out a car loan or opening up another credit line.

This is also not the best time to quit your job or decrease your work hours. Be open to your realtor about the standing of your finances. That way, he or she can offer you the perfect properties for the price that you can afford.

Don’t Go Beyond Your Budget

Lucky home buyers find their dream home in their desired budget within the first few months of looking around. Others may not be as lucky and might need several more months to find their home. While you should never purchase a property you do not love, it is also critical that you do not overstretch your budget and put yourself in a financial stir.

Always remember that paying for something that is out of your budget do not just put a lot of stress on your finances. This can also cause some strain to supply your family’s basic needs. So if you fall in love with a house, but the monthly payments are more than what you can afford, it is time to move on.

Most new property buyers will benefit from taking advice from their selected realtors and from their families who have gone through the entire process of buying their first home. Be on the lookout for the best properties and work with a real estate agent whom you can put your confidence on.


December 7th