How to Avoid Home-Buying Mistakes
We understand that buying a home for the first time can feel overwhelming, so we put together a few tips that should help you prepare.
1. Talk to your lender
This should be first on your list as you begin your research. Some real estate agents or brokerage companies will ask that you speak to your bank before looking at homes to learn what you can and cannot afford.
2. Check your credit report
It’s a good idea to check your credit report and history for any discrepancies. If you find a mistake, work to get it corrected. Catching errors and working towards a solution is one way to increase your credit score and could help you get a better mortgage rate.
3. Figure out your down payment
Putting down a larger, more significant payment upfront results in a lower monthly mortgage. However, this may not be feasible for everyone, depending on your finances. Be sure to discuss these details with your lender to decide what is right for you.
4. First-time buyer programs
While the federal tax credit for first-time buyers is no longer available, some states still offer tax credits. Every state is different, but first-time homebuyers can sometimes qualify for discounts and state-level tax credits. Doing a little research for what’s available in your area should be part of everyone’s financial strategy.
5. Don’t empty your savings
As tempting as it may be to put all your savings into buying your first home, it’s safe to keep some money in your savings account. A previously lived-in home could need a few repairs. It would also help if you kept some extra savings on hand for regular maintenance costs.
Yoakum National Bank offers lending services for residential real estate needs. Our specialists can talk to you about saving for a down payment, preparing for maintenance costs, and help you find the right home loan for your individual needs. Contact us to learn more about how we can help you reach your financial goals.