Transcript: Tips for first-time home buyers
Tips for first time home buyers. Buying a home can be exciting and a little overwhelming all at the same time especially if you’re a first-time home buyer.
So DCU has some tips to help guide you through the process.
Number One: get prequalified for your mortgage.
Then you’ll know exactly how much you can afford before you start looking.
And the seller will have more confidence in accepting your offer.
To get prequalified, have your most recent tax returns, W twos, pay stubs, and bank statements handy. While you don’t need these documents to apply for a mortgage, you will need them for verification during the loan process.
Number Two: Choose the right mortgage.
Today, you have a lot of options with different rates, terms, and benefits. So be sure to talk to a DCU loan officer who can review the options to help you decide which mortgage makes the most sense for you.
Number Three: plan for your down payment, closing costs, and pre-paid items.
To get a home mortgage, you’ll be required to make a cash down payment, usually three to twenty percent of the home’s full purchase price.
It’s also important to plan for closing costs and other pre-paid items because these could add up to a few thousand dollars. Closing costs include such item as application fees, attorney fees, title insurance, appraisal fee, and recording fees. Pre-paid items are costs like property tax escrow, homeowner’s insurance, and pre-paid interest.
Number Four: make a list of your must haves, maybe it’s the number of bedrooms a two car garage or a master bath.
Decide what’s most important to you as this will help you find the home that’s perfect for you.
Number Five: start looking early.
House hunting takes time. So, try to start looking up to six months in advance of when you’d like to move in to your new home.
And finally, set aside some move in money for new furniture, painting, or maybe a new appliance. It’s part of the excitement of moving into a new home.
So, to sum up, get prequalified. Choose the right mortgage. Plan for your down payment, closing costs, and pre-paid items. Make a list of must haves. Start looking early. And set aside some move in money.
Remember, DCU loan officers are always here to help you choose the home mortgage that’s right for your needs. For more information, call one eight hundred three two eight eight seven nine seven go to DCU dot org backslash mortgage, or a DCU branch.