Five Important Steps to Buying Your First Home

With the First Time Home Buyer Tax Credit extended, more and more people are looking to buy a home right now. However, owning a home is not something you want to rush into, and you need to know what you're getting into and how to approach it in order to make a responsible decision.

The key to the entire process is to ask questions. Lots and lots of questions. And, there is NO STUPID QUESTION.

Here are 5 important steps to buying your first home:

1. Get your Finances in order - Check your credit score, taxes and all other aspects of your finances to figure out the max you can afford with monthly mortgages, utilities, taxes, maintenance and insurance. A bad credit score can affect what rates you sign on a mortgage...or prevent you from getting one altogether.

It helps to go ahead and get pre-approved by a lender. That lets the seller know financing is already lined up.

2. Find a Realtor and start looking - Often the best way to choose a realtor is through a referral from a friend or family member. Make sure they have experience with the area you're interested in and are good negotiators. Make a list of pros and cons of things you must have in a house and prioritize it. Consider location and convenience to church or shopping or schools.

3. Investigate the reputations of builders & condos - Check out their financial health and get info from the Better Business Bureau.

4. Make an offer and apply for a mortgage - Buyers are generally in the driver's seat these days. Have enough cash for a down payment, which can be a minimum of 10% and extra funds for closing costs, sppraisals and move-in deposit. Definitely do an inspection.

5. Prepare for closing - Secure homeowners insurance. Have a financing contingency to get you out of your contract without penalty if your loan doesn't go through. Have certified funds ready, a cashier's check instead of a regular check.

Buying a home is a wonderful milestone, but also a big responsibility. Do your research and prepare in advance. Most our clients are going through this process and cleaning up their credit in advance. United Credit Source wants to help you through the important times in your life and prepare you for your future!

5 key steps to buying your first home, tax credit or no.