TracyRealEstateBlog-5 Resolutions for First-Time Home Buyers

5 Resolutions for First-Time Home Buyers

If you've promised yourself you would save those pennies to finally become a homeowner for the first time in 2014, we've got five, easy steps resolutions to help you achieve your goal.

1. Boost Your Credit Score

Your credit score will play a key role in your mortgage approval and rates. At the beginning of the year, order your credit reports from AnnualCreditReport.com. It is a free service authorized by federal law. Go over each report, dispute any errors, and pay off any old debts. 

In the meantime, avoid big-ticket items such as cars or furniture and don't apply for new credit. A credit inquiry itself can cause a credit score to temporarily drop, acquiring more debt to buy, or the capacity to acquire more debt by opening a new credit account, can have drastic effects on your mortgage situation.

2. Save Up to Put Down

You will need a 20 to 30 percent down payment to qualify for the best mortgage rates. Try cutting optional expenses to save more. Such examples can include, cable bills, internet bills, movie-service subscriptions, etc. This can save you up to a $1000 a year. The more you save, the better rate you will be able to obtain and the chance avoid private mortgage insurance.

3. Find the Best Real Estate Agent

Finding a great Realtor takes time but will pay off in the end. Find a buyer's agent who will give you a few recent testimonials from happy buyer clients. Be sure to check those references to be certain they are legit. To read Lisa's testimonials, click here.

4. Get Pre-Approved

Knowing what can be afforded, what you qualify for, and what type of loan you want to help find the best deal when you're ready to apply for a mortgage. To start, research the differences between conventional and unconventional loans and find a mortgage calculator to get an idea what you will be spending on a mortgage per month. When you're ready to shop for mortgages you will be educated and informed before being presented with your options.

5. Find Your Home Dream Home

Potential home buyers should be reading and researching as much as they can and as soon as they can. Don't wait until you're ready to buy to start looking at homes. Start early by researching certain neighborhoods in the area you're interested in living in. Once you're ready to shop, you'll have a clear idea of what you want and what you can afford. 

Think you're ready to buy? Search our automated listing search at www.TracyListings.com