5 Things First Time Home Buyers Should Know - Service First Mortgage

Buying a home is the most important financial decision to make. It is important to learn the home buying process before making any rash decisions. After researching and learning more about the process, you should understand more about the real estate market and the current mortgage market. Here are five things you should know before purchasing your first home.

How much Home Can You Afford?

The thing you should know before purchasing a home is how much house you can afford. You should consider estimating the mortgage amount that best fits your budget. Check out our Home Affordability Calculator to determine what kind of home is right for your budget.

Home Prices Fluctuate

The price of a home can either stay the same or change. House prices tend to change or react differently due to economic shock.

Required Loan Application Documentations

Many lenders request that you have: copies of your paystubs (reflecting a min. of 30 days), name and addresses of employers for two years, w-2s for two years, one to two tax returns, etc. Be sure to have all required documents prior to entering the pre-qualification stage.

Preparing to Make a Down Payment

In addition to having a good standing credit score, you will need to save money for a down payment. As you save, never underestimate how much you will need to put down on your home. Always be prepared for additional cost such as, closing costs.

Reframe From Applying For Credit Before Buying Home

You should never apply for new credit accounts when looking to purchase a home. This can have a huge impact on your current credit score. Credit utilization can reduce your chance to having a low mortgage payment. It is best to wait to apply for additional credit after purchasing your home.

We are here to enrich the communities we serve and empower our customers with the responsible financial management knowledge to promote smart financial habits.

Let us show you why it’s easier by contacting us today to get you pre-qualified!