First Time Home Buying Tips

Buying a home should be a fun process, but the task can also be daunting. New buyers can be intimidated by the large variety of options. Before you start searching for your new home, you should consider following these first time home buying tips.Set a Firm PriceWe all want a perfect dream home, but we need to be realistic. Set a firm upper limit price. You will most likely visit several beautiful homes, but you should not go over your budget. Your mortgage, taxes and insurance should not be more than 29 percent of your annual income.Raise Your Credit ScoreIf you want a great interest rate, you will need a high credit score. Pay off your debts and avoid getting further into debt. Most lenders want your credit score to be above 690. If your credit score is lower than 620, your home loan will probably have a high interest rate.Shop for a LenderShop around for a lender. You should have a clear understanding of financial terminology. Before signing a contract, you should compare interest rates, payment penalties and the terms of the mortgage.Check Out the SurroundingsCheck out the neighborhood and the schools. When you walk or drive around the neighborhood, take in your surroundings. The people across the street will be your future neighbors, and their home could raise or lower your property value.Do Not Fall In LoveDo not get too emotional. You will likely visit dozens of homes, and you might fall in love with a few amenities. Keep your poker face. If the seller knows that you love everything about the home, you might be at a disadvantage in the negotiation process.Searching for a home can be tasking, but these tips can help you avoid some of the common pitfalls. A new home is a sign of stability, and the purchase is a huge milestone. When you choose the perfect home, you and your family can create wonderful memories.