First-time home buyers may feel overwhelmed because they have a lot of choices to make along the journey, including selecting a buyer’s agent, a loan officer, and a loan program. But purchasing a home can be easier than you think. If you are well-prepared, you will have a significant advantage over other buyers, you will be able to compete successfully, and you will have peace of mind during the process.
If this is your first time purchasing real estate, it is in your best interest to begin with the basic suggestions that follow regarding things you should and should not do.
Tips For First-Time Home Buyers
- Verify the Status of Your Credit. The majority of credit scores can be accommodated by the available financing programs. Still, as a first-time home buyer, the higher your credit score, the better bargain you will receive. Ensure your credit is in excellent standing before starting the home loan application process by settling your bills on time, keeping your credit lines’ balances low by not adding to them, and delaying the closure or opening of any new accounts until after the loan application process has been finished.
- Obtain Sufficient Homeowner’s Insurance. Your lender will require homeowner’s insurance, so if you don’t know where to begin, ask your buyer’s agent or loan officer for suggestions. They can connect you with insurance brokers they commonly work with so that you can get a reasonable deal on your coverage. As a first-time home buyer, you should always ask lots of questions about any business you choose. Sometimes you will save money if you decide to bundle your home and car insurance, so look into the alternatives for that as well.
- Don’t Spend All Your Savings. Many costs can arise when purchasing a new home. After your loan is closed, you’ll want to be sure you have sufficient savings and money set aside for a rainy day. It’s essential to leave yourself with some money in the bank just because you might not know what to anticipate after closing on a home.
- Avoid Looking For Homes Before Receiving Pre-Approval. Many agents may need a pre-approval letter before they start showing you homes because they want to ensure that you can afford the homes you are looking at. Getting this out of the way early on will help your first-time home buyer financing process run more smoothly after you are formally under contract, which is a smart idea if you’re a first-time home buyer.
Your Team at McGowan Mortgages is Here For You
Finding a reputable buyer’s agent and loan officer to assist you with the process and answer your questions can make the difference between a difficult and simple home purchasing process.
If you want to know about the best home loan in Kansas, don’t hesitate to contact McGowan Mortgages. Homebuyers in Kansas City and all around Missouri have benefited from our expertise in home loans, which is why we’re committed to ensuring that your home purchase is top-notch. Call us now at (816) 631-9687 so that we can do the same for you.