You’ve always dreamed of owning a home. But given inflation and rising interest rates, you might feel that this dream is out of your reach. But don’t give up. You can navigate today’s real estate market and successfully purchase your first home.
Here’s how.
Save Up For Your Down Payment
Try for a cash-only purchase if you can; but if this is impossible, aim to save for 20% down.
Save Up For Closing Costs
These are fees which typically can add up to between 2%-5% of the amount of your loan.
Build Good Credit
Lenders will look at your credit report at least once, so avoid getting a new credit card or taking out any other loans right now.
Find Out What You Can Afford
Your monthly payments should not amount to more than 25% of your income.
Choose The Right Type of Mortgage
Look into conventional mortgages, FHA loans, USDA loans, and VA loans, if applicable.
Choose the Right Lender
Shop around for a lender that you feel comfortable with.
Get Pre-approved
Get a formal letter from a lender stating what you can afford.
List Your Needs Vs. Wants
Do some soul-searching about your real motivation in wanting a home, and let that guide you.
Choose the Right Real Estate Agent
A qualified realtor, like the team at D Realty in Albuquerque, will expertly guide you through the process and match you with the perfect home for your needs and budget.
Choose the Right Neighborhood
Do your own research on schools, crime rates, and traffic to inform your decision.
Stick To Your Budget
Do not allow lenders to entice you by offering more than you can afford. Set a price range and stick to it.
Get a Home Inspection
Home inspectors can detect mechanical and structural problems to help guide your decision.
Get Insurance
Your lender will require home insurance, which protects you and them in the event of a disaster.
You can always contact the realtors at D Realty if you have any questions during this process. And soon you’ll be well on your way to finding your dream home.