Consider These Suggestions When Purchasing Your First Home…

Home…where memories and traditions will be made to cherish for years to come and where you will create an environment that’s all your own.

Whether you are considering a condo, town home or a single family dwelling, the first time buying experience can be daunting. Let’s walk through the steps together.

Suggestions for preparing to buy a home:

  • Think 5 years into the future and be as certain as one can be that you plan to stay put that long. The first years of mortgage payments go primarily towards interest, not principal. So unless your location area experiences a boom, you will not build up much in the way of equity during those early years. So if your plans don’t include staying a while, renting may be your best option for now.
  • Request your credit report and clean it up prior to applying for a loan. A good credit report isn’t just necessary in securing a loan, but can affect your interest rate and make your offer on a home more attractive. Lenders will consider not only your income, but also debts, assets and liabilities, so have your ducks in a row.
  • If you have not yet established any credit, do so.
  • Save for a down payment.
  • Track your expenses and set up a strict but realistic budget. Keeping track of your spending may reveal areas where you can cut back on unnecessary expenses. A budget will serve in defining what amount you can afford for a home.
  • Pre-qualify for a home loan before shopping – more on that later. This will prevent wasted time (and disappointment) looking at homes out of your price range. Be comfortable with the payment amount you are approved for, no matter the amount. A general rule of thumb is for the price of the home to be about two and a half times the amount of your annual income.
  • Get a list of all required documents needed and be sure to have them available when pre-qualifying.

Buying a new home should be exciting, but also provide you with a sense of stability and financial security. That’s why it’s so important that you know ahead of time the answers to very important questions, particularly – is homeownership right for me?

Headquartered in Birmingham, TJC Mortgage, Inc. takes pride in helping to educate our home buyers and assisting with the best mortgage plan for each customer’s particular needs. Let us guide you in your dream of home ownership.

Ready to Get Started?

Apply for a Loan

Have a Question?

Contact Us Today