First Time Home Buyer Tips
Whether you are purchasing your first home or are a seasoned home buyer, review this list of tips to help you ease through buying your new home in Alamogordo, NM or any city.
The home buying journey is an exciting time but it can also be stressful when you don’t know what to expect regarding the financing of a home. After you have researched location, homes and builders, then it’s time to determine what you really want and need. So, the first step is to decide how much to spend on your new home and which type of mortgage will work best for you.
You will also want to take time to learn the lingo and understand the settlement process. There are plenty of resources to help you understand terms and the process, and your local bank might also be a great source to find helpful, trustworthy information. French Brothers also works with trusted lenders in each of our cities, lenders we have previously worked with and who understand the new build process.
1. Learn What You Can Afford
Paying for a new home goes beyond just the mortgage. Put together a spreadsheet of your current monthly bills and expenses to figure out what you can actually afford to pay monthly for a mortgage. Keep in mind that in addition to the monthly principal and interest, you will also pay into escrows for property taxes, and insurance. This is not meant to deter anyone, but rather prepare you to be in the best situation possible when you enter into this buying process. Remember, you can always add more home features (like bells and whistles) after you have settled into the home. Learn how to calculate your “Debt-to-Income Ratio” or DTI. Visit our Easy 5 Step Guide to a Home Mortgage to learn more.
Remember that French Brothers is about YOU and helping you purchase your new home in Alamogordo, NM or any of our other new home communities throughout Artesia or Hobbs. One of the great things about a French Brothers home is their commitment to building energy efficient homes. Learn about several included interior and exterior design features that are found in French Brothers homes and how those features will save you money on your monthly utility bills. We want to help you during any step of this journey from deciding if you want to buy, to the middle of the home building process, or after you have moved into your brand new home – we’re here for you!
2. Pay Off Your Debts
Another helpful thing you can do before a large purchase, such as a new home, is to help your credit debt limit. Lenders will look at your total debt ratio. Hopefully you have been building up your savings, but now is always a great time to start saving. If possible, pay off any smaller debts you owe, such as a car payment with only a few months left. Now is NOT the time to open a new credit card or open a new line of credit. Lenders will look at everything and use your credit score as a key factor to determine whether or not to approve you. Take time to learn about all of the areas that affect your credit score and the credit approval process. This understanding will not only help you with a new home purchase but with so many things moving forward in life too.
3. Get Pre-Approved
Once you are comfortable with the lingo and know your credit, you will visit with a trusted lender to understand the loan choices that would be available to you, and get a prequalification letter. Don’t be afraid to meet with a couple different lenders to see who you are most comfortable working with, and get multiple prequalification letters. You will be able to compare rates and limits, and see who will work best for you.
Then select one lender, determine which type of loan is the most suitable, and get pre-approved for that loan. Because you have done your homework and already know how much money you can borrow, you will know what price range to consider and can move quickly into entering a buyer’s agreement for your new home in Alamogordo, NM. Ultimately, your lender’s pre-approval would still be subject to a final verification of your credit and a satisfactory appraisal, but you can breathe easy now that you know what to expect.
Enjoy the home-buying process! It’s an exciting time to dream about your new home and new life in a French Brothers home. As a recognized, award-winning home builder in New Mexico, French Brothers builds homes for You. Call 800-691-4375 or click here today and learn about several great and affordable new home communities.
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