1st Time Buyers

CONGRATULATIONS! You’ve taken the first step to making your dream of home ownership come true! To avoid pitfalls, the following steps may help you along the way:
1. Know what you can afford – In most cases, buyers can afford a home that costs 3-4 times their annual income. For example, if your yearly income is $30,000, you should look for a home that is in the range of $90,000 $120,000.
2. Begin to save for a down payment – Depending on your credit history, you can estimate 3-5% of the home value as a down payment.
3. Check your credit – Credit history is one of the key factors in determining your interest rate and loan terms. Mortgage lenders typically require
a. W-2 forms for the past 2 years
b. 3 months of bank statements
c. 2-3 months of pay stubs
Pause any new credit activity to keep your credit score from dropping.
4. Get preapproved for a loan – Having financing already in place shows the home seller that you are a serious buyer. You may qualify for down payment assistance – ask your realtor for details.

Contact me soon and I can help you get started!