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Helpful Hints For First-Time Buyers

Helpful Hints For First-Time Buyers
Apr 18, 2024

If you are thinking about buying your first home, you are probably feeling equal parts excited and scared! It is a big financial commitment and a lot of paperwork and inspections that you have no experience with. Choosing a great real estate agent to support you will be invaluable during this time, as they will be there to guide you through the process. However, before you start shopping around for houses for sale in Murfreesboro, TN, here are a few handy hints that you should know before buying your first home.

Start Saving Early

If you intend to get a mortgage, saving for a down payment to put towards your home is important. This can be anything from 3% to 20% of the purchase price, depending on the type of mortgage you get. It may be possible to make use of government programs designed to help first-time buyers get on the property ladder, but it is wise to start saving for the down payment as early as possible, even when buying one of the houses for sale in Murfreesboro, TN, is just a dream you will fulfill ‘one day’ in the future.

Work On Your Credit Score

Once you have started saving for the down payment, you should also consider your credit score. This will play a big role in securing a mortgage. Paying off your credit cards is a great place to start. The higher your available credit and the lower your utilization of it, the better your credit score will be. You should start checking your credit report six months before applying for a mortgage. Get a report from the three main credit agencies: Equifax, Experian, and Transunion. Look for any errors, including old debts you have already paid off or debts that are not yours. If you find any discrepancies, take the appropriate action to dispute them and get your credit report corrected before approaching mortgage lenders.

Don’t Finance Anything New When Buying a Home

Your income and your current level of debt will determine the amount you can borrow. Financing a large purchase, such as a new car or new appliances, would reduce the amount you can borrow for your mortgage. Try to avoid making these large purchases until after you have purchased your new home. It will give you a larger mortgage to shop for houses for sale in Murfreesboro, TN.

Explore Different Mortgage Options

When choosing your first home, you will be shopping around and looking at various houses for sale in Murfreesboro, TN. Choosing your mortgage provider should be no different. Explore all of the mortgage options available to you and compare the interest rates and repayment structures. Make sure you compare both conventional lending and FHA loans. In most cases, first-time home buyers can take advantage of a lower down payment with an FHA loan. If you are an active member of the military or a veteran, then you may also want to look at mortgage options from VA home loans.

Check Out First-Time Home Buyer Programs

One of the perks that comes with being a first-time home buyer is that you may be able to access special assistance programs. This can include more lenient credit requirements for mortgages, funding for special first-time buyer mortgages, and more. In addition to federal programs, you should also look at first-time buyer assistance offered by your state. Once you know which programs are out there and whether or not you qualify for them, it can help you choose the most appropriate time to purchase your first home from the wide selection of houses for sale in Murfreesboro, TN.

Make Sure You Are Financially Stable

You may be excited to get out there and start looking for your dream home among the houses for sale in Murfreesboro, TN, but it is important not to get too carried away and be certain that you are financially ready to own a home. Mortgages are a 20 to 30-year commitment, so it is vital that you are financially stable before you take on this level of debt. Not only must you have a down payment saved, but you must also have low debts and good credit. Is your job secure enough to cover your monthly repayments? Have you budgeted for other costs, such as property taxes and homeowners insurance? It can be a good move to consult a financial advisor with experience in real estate to look at your finances and evaluate your options.

These are just a few of the important things you need to consider when you are embarking on the exciting journey to owning your first home. Work with an experienced realtor, and they will be able to help guide you through the process. Once you have your finances in order and a mortgage preapproved, you can get down to the fun part - finding the perfect home among the various houses for sale in Murfreesboro, TN.


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