For most people, buying a home is the biggest purchase they will make in their lifetime, and with so much money on the line, it can also be a huge and difficult decision to make. Even for people with experience buying and selling their home it can be stressful, so for first time buyers who may have very little knowledge of the homebuying process, that stress can be huge. To help ease the anxiety, we can help with these top tips to help first time buyers along with their dream of home ownership.

Get your credit score in order

When you apply for your homeowner loan, lenders will want to know that you are unlikely to default on your repayments. Before applying, check your credit score to make sure that it is in the best possible order. If you do have any outstanding payments and you can afford to, get them settled and ask the lender to notify credit agencies so that this no longer appears as a default on your credit report. Also check for errors. It is not uncommon for something incorrect to appear on a credit report. If you see anything you question, contact the organization themselves and the credit reference agency to query it or get it removed.

Your credit score doesn’t only affect your ability to get a homeowner loan, it can also affect your interest rate, so having the best credit rating possible can help you to potentially save thousands of dollars over the term of the loan.

Start saving for your deposit and fees as soon as possible

When you buy a property, most lenders will ask for a minimum deposit of 10% of the purchase price. However, a larger deposit, even an extra 5%, can reducing your monthly repayments and make a more desirable applicant for a homeowner loan. This is because an applicant with a higher deposit can be perceived as a lower risk, since they are making a greater commitment to the purchase. It’s not just your deposit you will need either. With any property purchase there will also be fees such as search fees, completion fees and taxes. There are plenty of people who can advise on these fees.

Hire a realtor

With their years of experience, professional realtors can be of huge value to any homebuyer, and especially first-time buyers. They are experts in the home buying process, so whether it is to help you budget for fees and taxes, or to make sure you get the best property without overpaying, they are almost a must-have ‘team member’ for a first-time buyer.

A great realtor will know their area well and can advise on values, how fast the market is moving, if any properties in certain neighbourhoods are known for construction issues and can tell you about any useful facilities and amenities in the area that you might not be aware of. They may even know of properties that may be coming onto the market soon and can get you in for a viewing ahead of the pack.

With their expertise, a good realtor can make the process as easy and stress free as possible.

Be in prime position – get pre-approved for your homeowner loan

Once you have shopped around and found the best mortgage deal for your property purchase, it’s time to make sure you are ready to move immediately when you fall in love with a property. By getting a certificate of pre-approval from your loan company, this demonstrates to the seller and your representative that you are a committed and motivated buyer, and in a position to proceed with a purchase without delay. Not only could you make yourself more attractive as a buyer with pre-approval in place, but you will also have full confidence in your budget to help you with your search.

For any more help, tips and advice regarding purchasing your first home,  contact Collins Coastal San Diego at our office in San Diego, California. You can call 858.252.0200 today to schedule an appointment.

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