Buying your first home can be a scary venture. It’s generally the most expensive purchase most people will make. And in this day of information, it is hard to know whom to trust. Here are some tips to get you started if you are thinking about buying your first home:

  • First, you need to decide what you want in your new home. Since it is a big purchase, it’s important to figure out your must haves. Do you need a large kitchen because you love to cook, or maybe a big yard for your children to play? Do you need the right school system or maybe a community pool? Do you want a traditional house or would you feel more comfortable in a condominium where you wouldn’t have yard upkeep? 
  • Next, you’ll want to review your budget to see how much of a payment you’re comfortable making. Remember that you will be paying not only the principal and interest on the new loan, but also the yearly taxes and home insurance. Keep in mind, you will be responsible for all maintenance costs and utility bills on the new home also, so starting an emergency fund to cover unexpected expenses is also a good idea. Sometimes first time home buyers forget they will need to furnish that home with the essentials they may not already have, such as washer/dryer, refrigerator, bed, couch, etc.
  • After you’ve decided what you’d like to have in a home, you’ll want to go to your lender and get pre-approved for a loan. The lender will look at your monthly income, make sure you have a steady job and review your credit report. You will also discuss how long you want to repay the loan (the term) and how much of a monthly payment you can afford. By going over your budget ahead of time, you’ll be better prepared as to what you can afford. You will also discuss how much money, if any, you will put down towards your down payment and closing costs. Your lender will then be able to provide you with a pre-approval letter.  
  • Now you are ready to start looking for homes! You can do this several ways. You can go through neighborhoods you are interested in, or use sites such as Realtor.com or Trulia to see what’s for sale. You can also hire a realtor to help in your search. Ask your friends if they have a trusted realtor. As a buyer’s realtor, they are working for you to help you get the best deal possible on your new home. Don’t forget to show them your pre-approval letter.

This proves that not only are you serious about buying a home, but that you are also pre-approved for your loan.  Utilizing these steps should help make your home buying experience much easier. Remember True Sy Credit Union Credit Union has experienced loan officers to help you every step of the way. Happy home buying!