If you’re thinking about purchasing your first home there are a few things you can do to make the process go a little more smoothly and to help you purchase a bit more home.First, evaluate your long term plan and decide whether you’re actually planning on being in the area long enough to justify your home purchase. If you’re thinking about an investment purchase, look at the housing market where you live and evaluate how long you would have to hold the property to make it financially beneficial.
Months before you plan on buying, study your credit and learn what you can do to improve your credit rating. The better your rating the more likely you are to get a good loan at a low percentage rate.
Then only look at homes you can actually afford, there’s no reason to tempt yourself with something that is simply out of your reach.
Because you’re making your first home purchase you probably won’t need to come up with 20% to pay down. Many organizations offer first time buyers a deal and in some cases the down payment can be as low as 3%.
Then, get preapproved so you know your loan amount and you’re ready to start bidding. Only bid on homes you are sure you want to buy and only bid informed prices that are based not based on heart or gut feelings.