Buying your first home should be an exciting experience.
But how do you begin to navigate the whole process?
Our Advisors at Pinnacle are exceptional at walking First Time Home Buyers through each step, without it becoming overwhelming.
Get Pre-ApprovedThe only way to truly know how much home you can afford is to speak with a lender. Getting pre-approved lets you know that amount before you begin shopping for your home.Important things to know:Income: Stable income assures a lender you can make your monthly mortgage payment.Debt: Add up auto payments, credit card payments, student loans, alimony, child support, and any other debt you may have.Cash: Total assets, amount in a checking and savings accounts, and other programs.
Determine Monthly Mortgage Payment including Escrow.Escrow is a third party account used to retain funds including the property owner's real estate taxes and hazard insurance premiums. Escrow is only applicable in certain loan programs.
Understand Bill Associated with HomeownershipEstimate that those will likely cost one percent of the purchase price per year to maintain your home.
Establish Future Priorities and Plan for the Unexpected.What are your needs for the new home - new items such as furniture or lawn equipment?Perhaps a new car is in your future?Do you plan to have children?How long will you manage to make any type of payment due to loss of job?
There are many factors that can change the outcome of your loan. We've listed a handful below, as a way to help smooth the loan process.It is extremely important that you withhold from making any major life changes immediately before or during the loan process.Don't quit your job, change jobs (though this may not be a big issue, and may depend on the following factors such as: whether you stay in the same industry, and if your salary is equal to or greater than your prior job), or become self-employed.No large purchases, such as vehicles (or you may be living in it!).Refrain from co-signing on any loan but yours.Don't spend money that you have reserved for your down payment or closing costs.Making any changes to your credit, such as opening new credit accounts, overspending on credit cards, or closing an account without guidance from an Advisor.=Do not originate any inquiries into your credit.