You do not just wake up in the morning and decide that you are buying a new home. It is always important to seek advice from experts or those who have experience with buying a home. This will help you in making the best buying decision. Here are the first-time home buyer tips and advice that you will find useful.
Check the status of your credit
Credit is one of the most important factors that will determine whether you will be buying a home or not. Ensure that you know the position of your credit by going to AnualCredit.com to get your credit report free of charge from the three credit bureaus. In case of any discrepancies like unpaid accounts, make sure that you address them.
Evaluate your assets and liabilities
As a first-time homeowner, you need to evaluate what you already own in terms of assets and what you need to pay for in terms of liabilities. Then strike a balance between them. There is no point in increasing your liabilities when you cannot afford to meet them.
Have a proper understanding of rates against points
In the field of real estate, points are a fee that is paid to a lender to lower the interest rate of a mortgage. 1 point is usually equal to 1 % of the amount of loan. So try to ask yourself if it is better to lower your interest rate by paying points or if the rates are so low that even the said reduction is so minimal hence no need to buy points.
Know the interest rates of your lenders
Borrowers whose credit scores are high above 720 often go for the lowest available interest rates and get a conventional loan. While those with lower credit scores of 640 and below may experience higher rates because of the potential risk by the lender.
In conclusion, first-time home buyers must adhere to the above tips and advice so that they do not make mistakes when buying a home.