Buying a home is a huge step, and it’s important to see it that way because you want to do it right the first time. To help first-time home buyers with the extensive research, we’re offering you a few of our residents’ favorite basic blogs:
- Check your credit score. This number is one of the most important factors when it comes to buying a home. It affects your mortgage rate, loans, and monthly payments. The higher your credit score is (and the lower your debt), the better your rates will be.
- Budget for buying a house. If you don’t already, get into this habit. Save up money for the down payment and closing costs. Also, don’t forget to factor in interest, taxes, insurance, utilities, cost of commuting, upgrades, miscellaneous fees, and additions.
- Track your money. For a few months prior to purchasing a home, understand your monthly cash flow to see what kind of home you can afford. Keeping these financial records will also help you determine how mortgage lenders will view your fiscal responsibility.
- Organize your documents. Track your pay stubs, bank statements, tax returns, W-2s, and energy/water bills. It seems excessive, but most mortgage lenders want to see all of these papers before giving you a home loan.
Go through the home inspection process. Nothing is worse than walking into your first home to discover a cracked foundation or untight corners. Hire a home inspector from the American Society of Home Inspectors or the National Association of Home Inspectors to ensure that your new construction home is problem-free.However, if you choose a Ryan home, we’ll take care of everything through our Customer Involvement Program.
- Prioritize your needs and wants. You may want an open concept home, but is it OK if your commute is longer? If you want a home with the latest amenities, are you willing to pay a monthly fee to the homeowners association? Write a clear list of what you need and what you want in a home.
- Know your mortgage options. A “one size fits all” mortgage option doesn’t exist. It’s important to learn about different types of home loans and requirements for qualifications.
- Find the right new homes sales consultant. To find the best sales consultant for your home buying experience, ask for previous references, fact-check their local knowledge, and use personal connections.
- Read the contract. Request a draft copy of all signing documents before the closing date. This will give you a chance to thoroughly review everything before you get the keys.
- Take your time. This is the biggest piece of advice. While you may want to rush the process, it’s more important to thoroughly understand, and ask questions if you don’t. If a section of your contract sounds uneasy, talk with your new homes sales consultant. Don’t settle for a model or community that you’re not in love with because you’re ready to move.