How to get financially ready for your first home purchase!

Sweeney Southern Homes

So, you’re a first-time homebuyer, and buying a home in the Charleston area is something that’s been on your family’s minds, but you’re putting it off until next year.  Even though spring seems is a long time away, it’ll be here before we know it, so this time of year is really the best time to start planning for next year’s home purchase!  Taking the time to prepare for your first home purchase is most important. 

If you do take your time, and take care of those loose ends in your finances, you will be ready to take on a monthly mortgage, and you will be ready to make your dream of purchasing one of your life’s biggest investments become a reality.  There is no better feeling than waking up in your own home, planting flowers and plants in your own yard, and investing your hard earned paycheck into something that you can call yours…your home. 

Take some time, read the following steps, and you will be on your way to your dream home!

1. Check your credit – It’s important to check your credit early in the process.  You are permitted to receive one free credit report from the three national credit bureaus per year – Experian, Equifax, and TransUnion.  Visit annualcreditreport.com to take this first step. One of the most difficult things to do is to clear up any fraudulent activity on your report.  If you find something on your report that isn’t right, it could take months to repair.  That’s why it’s so important to do this first step early in your home-buying process.

2. Pay down any outstanding debt – This might seem obvious, but when you apply for your mortgage, banks don’t want to see that you have a whole lot of stuff and not a whole lot of money. Start paying off credit cards, and don’t add any more debt while you are cleaning things up.  Put off buying that new car, buying new furniture, or any other major purchases until after you have secured your mortgage loan.  Banks need to know you’ll be able to pay their loan first and foremost.  They want to see a high credit score, which debt negatively affects.

3. Save for a down payment – Most people think that a down payment should not be less than 20 percent of the home price. A 20% down payment would be great, but it's not necessarily required or realistic, particularly for first-time homebuyers.  FHA loans require a minimum of 3.5% down.  So relax if you thought you were going to have to save 20%, but do be prepared to bring some cash with you to closing.

4. Find out where you want to live! – This is the fun part! If you’re not sure whether you would like to live in Summerville, or maybe Mount Pleasant, or you’ve been pondering Goose Creek, get out and check out the neighborhoods.  Take a Sunday drive, get some lunch, walk around, visit the shops, check out schools, and see if you visualize yourself living there.  If you don’t, move on to the next area!  If you do, then you have just jumped the first hurdle to picking out your home, and are on your way to being a homeowner!  Remember, even if you don’t have kids, homes in good school districts move more quickly, which may be important if you decide later to sell that home. 

5. Mortgage pre-approval – A client who makes an offer with a pre-approval letter from their lender has more strength in negotiations than one who does not (unless you are paying cash).  The pre-approval process also lets you know exactly how much you may borrow on your new home, which will assist you in narrowing down the homes you consider.  You may want to check out several lenders to make sure you are getting the best terms and interest rate.  You also want to feel comfortable with that lender.  Make sure you have your pre-approval just prior to looking at homes.  As your agent, I can guide you toward reputable lenders.

At Sweeney Southern Homes, I specialize in providing outstanding personalized service every client.  Constant communication, understanding, and attention to detail is what I do.  As an Air Force veteran, I am also an asset to military members who will PCS in or out of Joint Base Charleston.  Buying or selling your home is one of the biggest events of your life! I am your trusted Charleston Real Estate professional … nothing is more satisfying than helping people achieve their dreams – and I love what I do!  Call Cindy at 843-300-2636 or email scsouthernhomes@gmail.com today!