5 Tips for Successful First Time Home Ownership

Owning a home is a great investment, but if it’s your first time, it can seem overwhelming. Having a plan and knowing what to consider is the first step to successful home ownership. Before you begin scouring real estate sites, consider these important steps so you can find exactly what you want, within your budget.

1. Know Your Credit Score

Before anything, you’ll want to check your credit score, which can help you secure better loan options. You can do this on your own, or through a loan officer, but they will check to provide the best options.

2. Find a Loan Officer

A loan officer is your professional guide throughout the full lending process. They will educate you on loan options, down payment requirements, interest rates, income and debt restrictions, the application process, and much more. They can also help identify any loan programs for first-time homebuyers to take advantage of.

3. Get Pre-Qualified

There is nothing worse than setting your sights on a home you can’t afford. Working with a loan officer to get pre-qualified can help you set realistic goals on your budget so that you aren’t stretched or disappointed.

4. Set Your Budgets

Your pre-qualification process will help you start to set your budgets. The pre-qualified amount is only an estimate of what the lender may offer. You now need to decide the actual budget amounts you can afford. These budgets should include your down payment, what you want to pay monthly, and other expenses that come with homeownership, such as taxes, insurance, utilities, HOA, closing and moves costs, etc.

5. Find a Real Estate Agent

It’s time to find a real estate agent and make your needs/want list for your home. Focusing on needs first, such as community, schools, garage, etc. will help your real estate agent narrow in on options and save time. They will also help you negotiate and determine if your wish list is realistic or not.

Finding and owning your first home should be exciting. When you follow the above steps, you’ll set yourself up for success without the stress of financial burden or disappointment. If you’re beginning your homebuying journey, whether your first or not, Home State Bank Home Mortgage Lenders are ready to answer all your questions so you can feel confident about this next step.

Home State Bank is a Member FDIC and Equal Housing Lender.