Tips to consider when Buying your First Home

Consider your Finances

Household spending can inhbit the process of buying a new home. Banks want to see long term sustainable income and spending patterns over a period of at least 2 years. Just because you have a great job making lots of money doesn't mean you will be approved for a loan. They consider debt to income ratio, future earnings, current account balances, amount of credit being used (i.e. credit cards/loans), credit history, etc.

Consider your Job History

Traditionally banks will look for 2 years in your current position to be a positive for qualification. Any time less than that cannot be assurance for banks to believe you have sustained income long term. Additionally, if you are self-employed, work seasonal jobs or get commission checks seperate from hourly/yearly pay be prepared to show at least 6 months worth of stubs so the bank can use that income to count towards your loan approval.

Consider your Local Expertise

Even if you have lived your entire life where you are buying, a professional Realtor is highly recommended to help in your house hunting journey. Certified Realtors provide local knowledge that is vital when looking for a property. They can discuss local trends, provide sound advice related to repair costs, neighborhood values, recently sold properties, as well as point you in the right direction based on your list of needs/wants.

Consider your Inspection Company

A well-known, reputable Inspection Company is what your looking for. You wouldn't spend 100k+ on a car without test driving it would you? Don't purchase a home without hiring an Inspector to look at the structural, electrical, plumbing, insulation, exterior condition as well as any potential code violations according to your local ordinances. They are vital to the home buying process and can save you a lot of money befor you ever have to spend it.

Contact me if you have any questions related to this post. (kyleroush@kw.com)