Must do’s for 1st Time Homebuyers

Organization is key in most successful ventures. It’s especially true for the first time homebuyers. Take a look at this list. It’s kind of like “must see TV” but tailored to the home buying process!

Must-do steps for first time home buyers:

1. Improve your credit rating. Your credit score determines if you get a mortgage, your down payment and the terms of your loan. Check your credit rating using Experian, Trans Union, and Equifax.

2. Determine what you can afford. Gather income records, bank statements, W-2 forms and tax returns for recent years. Document what you pay for rent and how long you’ve been at your current address.

3. Use on-line resources. As a first time home buyer, it’s important to assess what you can afford. Online calculators can help, but talking to a mortgage consultant is your best bet. Which leads us to…

4. Get mortgage pre-approval. Taking the time to get pre-approved is your best bet when shopping to purchase your home.  This process also saves you time, by making sure you are looking for homes you can reasonably afford to purchase.  Our staff is here to make sure your buying experience is pleasant and seamless as possible.   Your next step – get pre-approved.

5. Determine your tax costs and benefits. Look at the whole picture to see how tax benefits and local taxes and fees add up for you. Don’t forget insurance and closing costs.

6. Meet with a reputable Realtor. This is an early step in checking out the local market and finding a path through the first-time home buyer’s minefield. Keep in mind that it’s the seller who pays the Realtors’ commissions.

7. Be honest with yourself. If you don’t ride around with a tool box in your car, you’re probably not the person who should buy a “fix-it-upper.” It takes a certain type of personality to make one’s home or gentrifying neighborhood a “project.”

8. Start with a broad focus. Use web sites like Zillow for easy searches and loads of information about neighborhoods. Be open to homes and areas that don’t occur to you right away.

9. Talk to the neighbors. Are streets repaired regularly? Do sewers back up during thunderstorms? How often does the power go out?

10. Find a nice place. Pick a home that is comfortable for you and your family, and that will serve you for a long time. This is not the market environment to be selling and buying homes every five years.

Any questions, just give us a call at 302-266-9500 and speak with one of our mortgage specialists here at Delaware Financial Capital Corp.

BONUS: Start with education. Download our free ebook “Homeowner’s Information Guidebook”.