4 little things that make a difference when buying your first home

For someone who’s never owned a home, buying your first one can be a little overwhelming. While the process can take a while, the more prepared you are, the more smooth it will be. Here are four little things that can make the process better for you.

1. Check your credit and boost it

The fact is, the better your credit score, the better loan you’ll qualify for. If you have blemishes on your credit report, you’ll be paying a lot more money in the long run. If you give yourself ample time to turn things around or correct any errors, it’ll benefit you wallet greatly over the course of paying off a 30-year fixed-rate mortgage. And remember, you’re allowed to receive one free copy of your credit report each year.

2. Start saving immediately

It’s never too early to start saving for a down payment. Although some loans offer as low as a 3% down payment, you’ll be paying for private mortgage insurance if you go that route. Open up a regular savings account and put away as much money as you can.

3. Figure out your price, size and location

Knowing how much you can pay and what size house you’re looking for will help you determine the right neighborhood for you. Don’t mind a commute? Searching for something a few miles out of town will help you get more bang for your buck.

4. Search a lot and search well

Don’t find one house you like and pull out your briefcase of cash (unless you actually have a briefcase of cash). Create a list of homes you like and check them out thoroughly. Test lights, fans, faucets, doors, windows and any other little thing you can think of. Also take pics and videos so you can review them again later. And don’t forget to consider things like proximity, not only to work, but to your kid’s school, your church, or even the grocery store.