Buying a home for the first time can be both an overwhelming as well challenging task. You have so many things to consider while buying a property that you will call home for the rest of your life. Young couples often face the daunting task of deciding on a house that fits their pocket as well as aspirations. Thus, it is imperative to do a little financial homework before you can actually get down to some legwork.
Here are 5 easy tips for young homebuyers that will make their task much easier:
- Check your credit score – To qualify for a loan, your credit score is going to play the most vital role. Every bank follows very strict loan approval criteria when it comes to credit scores. You will have to check your credit report for unpaid accounts or collection accounts or mistakes and rectify anything that can adversely affect your credit score. If you have a damaged credit score then you will have to invest some money and time to get it rectified. You need to keep in mind that only a good credit score will make you eligible for a loan.
- Weighing your assets and liabilities – First time homebuyers need to weigh their assets and liabilities. They must be aware of the amount of money they draw in and the money that they actually owe. This will give them a clear picture regarding the money that they will need after buying a house.
- Arrange the documents – You will need documents at every stage of home buying, so be ready with documents like two recent pay slips, tax returns, last two month’s bank statement etc. Buying a home is a time consuming process but when you are ready with the documents, consider one third of the job done.
- Find out whether you qualify – You will need to find out whether you actually quality for a housing loan or not. For these you can ask the bank officials and find out the amount of money you will need to repay the loans and the exact amount of loan you qualify for.
- Determine the down payment – You will have to get in touch of your bank and find out the exact down payment that you shall have to make. This again can be determined from the loan amount and the time period for which you wish to take the loan.