First-Time Homeowner Financial Checklist
There’s a lot to consider and address as you prepare to buy a home. It’s essential to understand what’s required and what to have coordinated prior to purchase. Follow this first-time homeowner financial checklist and you’re sure to be in your dream home on your terms in no time.
Pay Down Debt
Before anything else, focus on paying down debts and credit cards and make your payments on time. This will reflect on your credit report and help raise your credit score. Many credit card apps currently offer you a look into your score and the delinquent knocks against you. The more available credit you have, the better.
Know Your Budget
Take a realistic look at what you can afford. Choose a down payment that works for you. Investigate how much you can afford to pay in mortgage. Look at your income and leave yourself room.
Learn the Process
Knowing the steps in a mortgage process will help eliminate surprises and confusion. You’ll want to get preapproved by a mortgage lender before making an offer. Secure a mortgage and have the house inspected and appraised before proceeding. Additionally, you’ll need to complete the mortgage underwriting and closing.
Have Money Saved
Make sure you have money saved for closing costs and your down payment, but still have enough money for emergencies, maintenance, and repairs. Experts suggest you should have at least twenty percent of the house’s purchase price just for the down payment.
Budget Beyond the Mortgage
Consider whether—along with the costs mentioned above—you can afford property taxes, any homeowners association fees, the potential for a higher cost of a larger home, and the upkeep of amenities such as the lawn or a pool.
Decide on a Mortgage Type
It’s essential you decide what type of mortgage is right for you. Whether an ARM (adjustable rate mortgage), or a FRM (fixed-rate mortgage), you’ll have to understand the advantages and disadvantages to either before choosing. For more information on the difference and which is right for you, contact the professional loan specialists at Streamline Mortgage. These hard money lenders in Reno, NV can help you gain a realistic understanding of the best path for you.
As you mark things off of your first-time homeowner financial checklist, you consider the desired and doable length of your home loan. Organize your paperwork, too. Once you’ve made all the necessary decisions and compiled everything, you’ll want to be able to access the information at any time whether to adjust or reference. This is a huge step and you shouldn’t be anything but proud to take it!