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Buying Your First Home

Things to Know

1. If you do not think you can stay put, do not buy. With all of the transaction costs of both buying and selling home, there is the potential to actually end up losing money if you sell too soon. So if you think you cannot commit for a least a few years, do not buy.

2. Look into your credit scores and take appropriate steps to fix if necessary. You should definitely look into your credit score a few months before you even start home shopping. Double check the facts to make sure they are correct and fix any problems you discover.

3. Do not look at homes you cannot afford. Stick to what is in your price range and do not budge. Rule of thumb: typically you can only afford a home that is about two-and-one-half times your annual salary. It’s best to sit down and calculate your income, debts and expenses.

4. It is possible that you might still qualify for a loan if you cannot put down the standard 20 percent.

5. Shop for your new home in a district that has good schools you like.

6. Definitely talk to a real estate agent. They can answer all of your questions and even show you listings that are about to go on market. Look for an agent that has your best interests at heart.

7. Make a careful selection between points and rate. Paying for additional points will lower your interest rate. Lower interest rates will save you money in the long run.

8. Save some time by getting pre-approved by a lender before you start house hunting.

9. Do any and all of the necessary research before you start bidding on a home.

10. Be sure to hire a home inspector.