6 Smart Home Buying Tips For Beginners Tips by Kathleen Debra - June 29, 2019August 6, 20190 The process of buying a house and applying for a mortgage can be quite confusing and frustrating – especially to first-time home buyers. There are lots of decision to make and things to consider during the process. With all the hype and stress that comes with the home purchase, it’s easy to get caught up and make decisions you will regret later on. To help make your home-buying experience a better one, here are six smart tips to keep in mind. Table of Contents Apply For a Mortgage Before Looking For A HomeTalk To Multiple BrokersBuy A House Within Your BudgetAvoid New Credit Accounts Or Loans Before ClosingNegotiate A Home Buyer RebateSave Up Enough Down Payment Apply For a Mortgage Before Looking For A Home Many make the same mistake of looking for houses before applying for a mortgage. Talk to a Mortgage Broker Laredo first and get an underwritten preapproval. You’ll learn how much of a house you can afford to buy. Plus, successfully getting preapproved for a loan makes you look like a serious and capable buyer. Talk To Multiple Brokers Image Source Getting a home loan from a single Mortgage Broker Laredo can leave you thousands of dollars on the table. Not all brokers are the same as they have different minimum requirements, mortgage programs to offer, and even terms and conditions. By shopping around, you’ll find the best one who will look into your situation, understand your needs, offer the best mortgage option for you, and make you understand all of your options. Buy A House Within Your Budget It’s very easy to find houses that’ll make you fall in love in an instant. The thing is, most of those houses can stretch your budget. You will only risk your future and even your home if you go beyond the price range you can afford. For example, you qualify for a mortgage amounting to $350,000. Consider if you can comfortably pay the required monthly payment along with your current expenses and monthly obligations. Avoid New Credit Accounts Or Loans Before Closing If you do not want to jeopardize your chances of securing a mortgage, avoid applying for new loans, or opening new credit accounts. Your lender will check on your financial picture during the mortgage application and before closing. If your credit score drops and your DTI ratio exceed the required limit, you can end up losing your chance of finally buying your own home. Negotiate A Home Buyer Rebate In most states in the US, homebuyers can take advantage of rebates during closing. For example, you plan on buying a house priced at $250,000.00. You could save up to $2,500.00. A Homebuyer rebate can be up to 1% of the home’s purchase price. Make sure to check if the state you’re buying a house at offers homebuyer rebates. Save Up Enough Down Payment Don’t assume that you can’t afford a home purchase because you have no way of putting down 20% upfront payment. While having 20% down payment can save you money out of Private Mortgage Insurance, it’s not worth draining your savings. Consider other mortgage loan options that allow you to put down less than 20% of the purchase price. There are also housing grants programs available for first-time homebuyers that you can take advantage of.