For a lot of people, buying a home is the largest purchase they’ll ever make. Budgeting for big-ticket items like cars and vacations is a common practice, so why should purchasing a home be any different? Read on below for our four essential tips first-time homebuyers should consider in preparation.
Like any large purchase, having an idea in mind of how much you want to spend is a great first step to take when beginning the process of purchasing a home. After getting pre-qualified by your InterLinc originator, spend some time deciding what price range you’re comfortable with for your first house. From there, make sure to clearly communicate that to all parties involved so your Real Estate Agent knows exactly what you’re looking for.
PITI – four letters that mean a lot in the mortgage world! When looking to purchase your first home, make sure you factor in the total monthly cost of homeownership when deciding how much to spend. PITI stands for principal, interest, taxes and insurance. These four components will make up your monthly mortgage payment. For more information on PITI, click here.
A common goal-setting practice is to create SMART goals – specific, measurable, achievable, realistic and anchored within a set time frame. When planning for the timeline that you’d like to begin your search and be in your home, make sure to set SMART goals for money-saving and other preparations that you’d like to achieve before getting started.
Life happens! Oftentimes, you have a plan in place and something comes up that you have to prioritize. When planning for your first home purchase, make sure to have a plan for unexpected expenses that may arise during the time you’d like to be saving for your home. While something may cause a small setback, being proactive and thinking a little bit down the line will be helpful in the end!
For more information about purchasing your first home, reach out to one of our qualified loan originators today!