Tips for First Time Homebuyers
Looking to purchase your first home – here are our best tips for getting the financing you need:
Review Your Credit History. Before you start looking for a home, find out what’s in your credit history and correct or make improvements to negative information. The easiest way to get informed is to contact a WCCU mortgage loan officer and get pre-approved. They will work with you on your credit history, find the best mortgage terms and determine how much loan you can afford.
Down Payment – To avoid something called private mortgage insurance or PMI for short; you will typically need 20% down payment. If you are like most first time homebuyers you won’t have quite that much. On loans with smaller down payments, PMI is a common expense, don’t let that stop you.
Getting ready for the new mortgage payment – To get comfortable with a potential first mortgage…do a test for six months we set aside the difference between the amount of your rent and the amount (including taxes/insurance) of a new mortgage. After doing so, if you feel comfortable be confident you could afford a new home. PLUS, we have additional dollars down payment!
Additional Expenses – Smaller expenses add up once you buy. Consider expenses like furniture, appliances, landscaping, blinds, interior decor, lawn mower, or for us Wisconsinites a snow blower, yuck!
Seek professional help – One of the best options for a first time homebuyer is to connect with a great realtor. They help you through the process including finding properties that meet your needs, set up showings and provide pricing of current houses in the marketplace.