Becoming a first time homeowner may sound impossible but with some planning and guidance you can say goodbye to renting. Here are a few important tips when making the leap from renter to homeowner:
Meet with a Lender
Most people don’t realize that lenders meet with potential homeowners all the time who are years away from making their first purchase. A good lender can help you figure out what you are currently qualified to buy or what you would need to quality, and what your down payment would need to be. First time homeowners can put down as little as 3% to qualify for a loan.
Meet with an experienced Real Estate Broker
A good real estate broker will meet with you, give you guidance on the various price points in the market, location and timing of your purchase. We welcome people who are in the preliminary stages of their home buying journey.
Come up with a Savings Plan
Sometimes, it is simple lifestyle changes that can help you save money. Saving $415 a month will give you $10,000 in 2 years. Not paying for premium channels, cutting back on eating out, make your own coffee, and shopping at second hand stores. A big money saver is planning your meals each week. The average household throws away $50 plus a month in wasted food.
Check your Credit Score
Your credit score will be used to determine if you are approved for a loan, and what type of interest rate you will get. Check your credit as early in the process as you can. If you have a credit card that has been issued through your bank, give them a call and see if they can run your report for you for free; in the cases of some credit cards, they also offer a free monthly FICO score check. Dispute any mistakes that you find and look for ways to boost your credit score, like paying down credit card bills and setting up automatic bill pay so you are never late with your payments.
Give us a call here at Amoré Realty and we can help you navigate how to upgrade from a renter to a homeowner. We help people. That’s our business. 970 963 5177.
