Buying a House For the First Time

man in white dress shirt holding a silver key

Buying a house for the first time could be very exciting yet frustrating. Given this, you should make sure you’re doing things the right way to avoid any unexpected mishaps. Here are three insider credit tips every first-time homebuyer needs to know!

1- Set and fix your finances: Determine how much house you can afford, pay off all your debt, save for a down payment, and build your emergency fund.

Analyzing your financial situation is the most crucial first step before making any major purchase. In terms of buying a house for the first time, knowing your financial situation will help you determine how much house you can afford and the succeeding financial goals you should set following that.

You would want to have a clean slate before you make a big purchase, so cleaning your mess a.k.a. paying off all your debt is another crucial first step when planning to buy your first house.

Now that you are debt-free, it is time to save up for the down payment of your upcoming major purchase— your very own home. While saving up for your down payment, you should also build an emergency fund for at least six months worth of your expenses.

a person handing out the keys

2- Check and strengthen your credit score. You can get your credit report from credit bureaus such as Experian, Equifax, and TransUnion.

This is something most first-time homebuyers like you could possibly take for granted. After fixing your finances, it is mandatory to strengthen your credit score and make sure it is set to the minimum so you are able to purchase your desired home. Having a good credit score will widen your preferences when looking for potential properties to buy. In addition to this, your credit score is a primary factor that will determine if you are eligible to buy those potential properties in your consideration list.

3- Pay your bills on time and maintain a good credit standing.

You need to make sure that you consistently pay all your bills on time because late payments will definitely affect your credit score. One way to make it easier for you to pay your bills on time is by tracking your expenses on a daily or weekly basis.

Schedule a consultation so we can discuss your goals and come up with a game plan!