How to prepare for buying your first home

| Jan 19, 2021 | Residential Real Estate

Buying your first home can be a scary and overwhelming venture, especially when you are trying to purchase in an in-demand area such as the Bronx. If you’re serious about owning a home, you need to have a road map in place so that you can take steps toward your end goal and have everything under control.

If you have ambitions to own your own home but you don’t know where to start, the following is an overview of some key aspects of the pre-buying process that you should include in your road map.

Save, and save early

Purchasing your first home can be difficult because of the down-payment required. As a first-time buyer, you may be able to benefit from mortgage schemes that only require 3% down payment. However, even the smallest of down payments can take a long time to save for, especially when you are having to pay rent on a New York apartment at the same time.

Additionally, it’s not just the down payment that you will need to pay when you purchase a home. You will also need to pay closing fees and move-in expenses, whether that’s furniture, repairs or renovation costs. Therefore, never underestimate the cash that you will need, and you should start saving sooner rather than later.

Focus on strengthening your credit

Those who have bad credit have a low chance of being able to get a mortgage, even if they have savings. Start by checking your credit through all three credit bureaus. Once you know your credit score, work on strengthening it by paying all bills on time, keeping credit cards open but never abusing them and generally living within your means.

If you have the goal of buying your first home in the near future, make sure that you have a clear overview of the steps that you need to take, as well as how real estate law applies to you.