Tips for First Time Home Buyers
Get Pre-Approved. Being pre-approved is one of the most important steps you can take in the home buying process. Having a letter of pre-approval means a lender has looked at your financial situation and has approved you for a loan. This will save you time and energy when looking for a home to purchase, and will make you a competitive home buyer.
Do your research. Research the neighborhood where you want to buy. Know some facts about the area regarding prices. What is the median home price? What is the sales price of the average home compared to the price it was originally listed at (sales price to list ratio). What is the average marketing time for a home sale in the neighborhood over the last three months (meaning, how many days does it take to sell a home once it is listed).
Budget. According to Fannie Mae, your monthly housing expenses should not exceed 28% of your monthly income. Make sure that home ownership makes sense for you. If you go much past 30% of your monthly income and you risk spreading yourself too thin.
Determine your needs. When looking at what type of property you want to purchase, you have lots of options: single family home, condo, townhouse, or a multi-unit property. By determining what you want to get out of owning property, you can search for the home that meets your goals.
Get your credit in order. Your credit score is a large determining factor in what sort of interest rates you will be offered. If you have less than perfect credit you may want to consider taking some time and improving your credit score before you start the process of purchasing a home.
United Home Loans provides mortgages in Illinois, Indiana, Michigan, Minnesota and Wisconsin. Please call us today at (708) 531-8388 to speak to a Mortgage Banker or go to our Pre-Approval form to see the amount you can be conditionally pre-approved for....
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