5 Tips for First-Time Homebuyers
Onyx Plan 2 | Las Vegas | Pardee Homes
Are you preparing to buy your first home? If so, you may have already realized there are many things to consider. How much should you save for a down payment? Where should you buy a home? How much space do you need? When shopping for your new home, here are five tips to help make the road to home ownership a little easier.
1. Save for a down payment.
Saving for a down payment is one of the first steps in buying a new home. Not sure where to start? Take a look at your monthly expenses to see where you can cut and save. Today, there are many online tools, such as Mint or your bank’s app, to help you keep track of your monthly spending and set savings goals. Putting aside extra income, such as tax refunds or work bonuses, is another good way to save. You may be wondering how much your down payment should be. Depending on your mortgage loan, your down payment may be equal to 20 percent of the cost of your home. This allows you to avoid paying private mortgage insurance (PMI), a fee charged to you to protect the lender’s investment in case you default on your loan. However, not all loans require a 20 percent down payment. In fact, in 2016, the average down payment for a first-time homebuyer was 6 percent, according to the National Association of Realtors. Talk to a mortgage lender to learn more.
2. Check your credit score.
Your credit score will be one of the biggest factors that lenders use to evaluate your eligibility for a mortgage loan. It will also help determine your interest rate and possibly the loan terms.
Before you begin your homebuying process, it’s a good idea to check your credit. Are there any errors that may be negatively affecting your credit score? Dispute the errors and look for other ways to improve your credit, such as reducing any outstanding debts. It’s best not to apply for any new loans or open any new credit accounts while you’re working on improving your credit score.
3. Visit open houses and model homes.
Taking tours of different homes can give you a better idea of what you do or don’t want in a new home. Pardee Homes has new homes for sale across all our communities throughout Southern California and Nevada. There may even be a brand-new community opening soon near you. Check out the Events section of our blog to learn more about upcoming grand openings.
4. Be open to new areas.
You may find your dream home where you least expect to. In your home search, be open to new cities or areas you may not be as familiar with. While it’s important to keep in mind commute times and proximity to family and friends, you may be pleasantly surprised by what you find outside of your preferred location.
5. Get help from professionals.
Our New Home Specialists help first-time homebuyers all the time, and they’d love to answer any questions you may have and help you find the right home for you. Read stories from other first-time homebuyers in the Your Stories section of our blog.
Ready to start your new home search? Connect with one of our New Home Specialists today.