When you’re new to the home buying process, trying to get up to speed with all of the tasks, applications, and requirements associated with purchasing a home can be draining. In today’s highly competitive market, it can be difficult to even know where to begin. Here are five tips to set you on the path to your dream home.
- Be prepared.
The house bidding and buying process is extensive and time-consuming, making preparation key to your success. To better prepare yourself for the task, contact your bank about getting pre-approved for a home loan. By getting pre-approved, you have already sped up the financial and loan process, which will allow you to bid on homes more quickly and efficiently than if you’d begun the loan process after viewing homes. With Piscataqua Savings Bank, you can easily apply for a mortgage loan online here.
- Fix financial flaws.
Another simple way to prepare yourself for the home buying process is to get your finances in order now. Paying down any existing debt and working to improve your credit score can help to speed up the loan process and increase your likelihood of being qualified for a better interest rate. As a mutual savings bank rooted in the community, Piscataqua Savings Bank does not penalize borrowers with a low credit score with a higher interest rate—your credit score does not impact the interest rate offered on your home loan with Piscataqua.
- Build your savings.
Building your savings and having a greater financial cushion allows you to offer a larger down payment when bidding on homes. On average, a down payment is generally between 6-7% of the purchase price for first-time buyers. By presenting a larger down payment you may build equity faster, reduce monthly payments and overall mortgage debt.
- Understand the market.
Understanding your local housing market is key to your home buying success. Once you have determined where and what type of home you are looking for, you may begin to research the local market. By looking at what homes have sold in your area and how much they have sold for in the past six months, you gain a better understanding of the local market and pricing structure. To get to know the market you may conduct online research, speak to others who have recently purchased a home in the area, or sit down with a licensed real estate agent. It may seem daunting, but putting in the time and effort to learn your local housing market can greatly improve your chances of success.
- Be realistic about your spending.
A recent survey by Anytime Estimate found that spending too much money was the number one regret of homebuyers who expressed dissatisfaction with the home buying process, with one in three buyers reporting they overspent. It is important to be realistic about your budget and your spending. First, after you have gained insight into the local market, you can determine roughly the amount you will need to spend for a home with your criteria in the area. Second, determine exactly what it is you need in your future home, and what you can go without. Third, stay within your means and expect some surprise expenses along the way. With this information, you can make an informed decision about setting a realistic budget and sticking to it.
Home Loans with Piscataqua Savings Bank
Interested in learning more about the home buying process? Piscataqua Savings Bank can help! Stop by our office at 15 Pleasant Street in Portsmouth, NH or give our Loan Department a call at (603) 436-5250 to meet with one of our experienced mortgage professionals and learn how the process works. We’ll walk you through how DTI ( Debt to Income) calculations work, how to determine a purchase price range, and estimated monthly payments. Our friendly and experienced team of loan officers will guide you through a variety of financing options.
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