BLOGS

At Green Haven Homes, our belief is that everyone should have a home. First time homebuyers arguably face the most challenges on this front. Which is understandable because there are a lot of intimidating legal aspects to the act of buying a home. If you want to know the basics before jumping into the deep end, we have got you covered!

Credit Score

When it comes to being prepared to buy a home, there are three main factors to consider. One being your credit score. Your credit score is going to be the thing that influences the quality of loan you can secure. The low end of the spectrum would be 620-680. A decent score will range from 680-740. And the golden standard is anywhere above 740. While on the subject of credit, lenders will also measure your debt-to-income ratio. Obviously then, the less debt you must show, the better the loan you are likely to get.

Pre-Approval

Getting pre-approved is another action that can prove very beneficial. Approach your lender about the matter before you ever start looking for homes and they will provide you with a pre- approval letter. Going forward, this will help you to know exactly how much home you can afford, and it can also alert you to any potential roadblocks that need to be addressed before you continue. Additionally, if you are searching for home in a particularly hot market, having a pre-approval ready to go can lean in your favor by showing the seller how serious of a buyer you are.

Down Payment

Probably the biggest hurdle for first time homebuyers is pulling together a decent down payment. Understandably, the more you can put down, the better. But a 20% down payment is not your only option. 3, 5, or 10 percent down payments are also acceptable. Of course, if you are putting less than 20% down you will need to factor in PMI as well. At the end of the day, you should go with the down payment option that is the most comfortable for you.

Even if the real estate scene can seem daunting and overwhelming, it does not have to be. Talk to a trusted lender and real estate agent and they will walk you through the process. And make sure to choose the right home for you!