5 Tips for First Time Home Buyers

5 Tips for First Time Home BuyersBuying your first home is exciting and often marks a new chapter in your life. Because investing in a home is likely to be your biggest asset, what could be more important than protecting it? Covering your home with a comprehensive Illinois Condo Insurance solution can give you peace of mind in this new venture.

Although rewarding, the process of home buying can be daunting. Here to help you with the process, here are some useful tips on how to navigate the complete home buying experience.

  1. Credit Check- A good credit score is required for purchasing a home. You can check your credit online at AnnualCreditReport.com prior to applying for a loan to see if you’re in good standing. Your loan’s interest rate will depend largely on your score. Such things that can affect your score include unpaid accounts, credit cards, loans, and collection accounts linked to your name. When planning to purchase a home, it is recommended you repair any damage to your credit, if necessary- keep in mind that process takes time and commitment!
  2. Qualify- Organizing documents such as your W2, tax returns, and pay stubs for proof of income are also required for obtaining a bank loan. Providing sufficient evidence for the last 2 years is recommended. It is also imperative that you understand your finances in terms of income and budget. Evaluating how you spend your money will determine how much you can actually afford versus how much money the bank will approve based on figures alone. Bankrate.com suggests using the Front-end ratio which states that no more than 28% of your gross monthly income should be devoted to housing costs. Although there isn’t a specific number required by lenders, this is a good gauge to ensure you are not struggling to make your mortgage payment.
  3. Down Payment- These payments can be a big chunk of change no matter what your budget may be. Although saving is most likely required, there are programs to help you qualify for down payment assistance depending on your specific financial situation. Researching your options can lower the burden, so take your time!
  4. Shop- Create a wish list of items and features you would like in your first home. Finding a reputable realtor will help you see a variety of different options and will offer expert advice on pricing, location, size, property type, etc.
  5. Make an Offer- Your realtor will help you make an appropriate offer including any relevant stipulations you might have for the seller. Be sure to request an inspection prior to closing the sale of your home, as well. Once completed, any damages or repairs can be negotiated in your initial offer.

Purchasing a home is a huge and thrilling step. With the proper insurance solutions from Myers Insurance Group, you can keep your new condo or home safeguarded with our comprehensive Champaign Homeowners Insurance policy. To learn more, contact us today at (855) 534-5707.

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