What to Consider When Purchasing Your Initial Home

What to Consider When Purchasing Your Initial Home

Buying your first house can be an incredible journey. It’s important to start making plans long before you are ready to make the purchase. Some people start saving money straight out of school, hoping that they will be able to invest in a home much sooner than later. However, there is much more to buying a home than just saving for a down payment, although that is a big part of the equation.

Fix Any Problems with Your Credit

One of the first things you will need to do is fix your credit. If you don’t have any credit history to speak of, you will have to establish one. Apply for a small prepaid credit card, or start paying on your student loans now. Even if you only pay a small amount, it will start to show a solid payment history that banks will use to gauge your creditworthiness. If you already have a credit history but it isn’t in the best of shape, start to pay off some of your outstanding bills slowly. Paying a little extra each month will go a long way in bringing down your total debt.

Start Saving Early

Saving can be difficult when you first start out. Whenever you can, put away $5 or $10 a week. It doesn’t take much to start a savings account. As you start to get used to the idea of putting a few dollars a week in the bank, it will get easier over time. You might want to cut back on recreational spending by finding fun things to do that don’t cost anything. Put the money you would have spent on going out to eat or to the movie in the bank. Before long, you will have a tidy sum you can use toward a down payment on your first house.

Create a Budget

Create a budget that includes putting a few dollars in savings every week, as well as a little extra money for living expenses. If you don’t spend it by the end of the month, put it in your savings account. Every little bit helps and will help you reach your down payment goal much faster. This is also a good way to save a few dollars for an emergency if one occurs.

Get Pre-Qualified

If you have already got the process in motion, the next step is to get pre-qualified for a mortgage. This will show you how much you will actually be able to borrow for a mortgage, and you will know just which house you can buy before you even start looking. Getting pre-qualified is a great way to get started with the house-hunting process. If you look for several months and still have not found the perfect house, continue to build your down payment. The more money you have in savings, the better house you will be able to buy.

Start House Hunting

When you start house hunting, look at the amount you have been pre-qualified for. This will be a good place to start your journey. While you may not be able to find exactly what you want at first, it’s fun to search for one. Attend open houses, look at floor plans and drive through different neighborhoods. This will give you many different ideas on how to decorate your home, both inside and outside. When you start house hunting, that is when the real fun begins!

As you begin to take the first steps on this new and exciting adventure, talk to the agents of the Steve Wilk Insurance Agency. Visit our new office at 310 S. Main Street, Suite C, Lombard, IL 60148 today or call and schedule your first appointment. Our agents can help you with the search and will also be able to set you up with a quality homeowners policy once you seal the deal!