4 Tips For First-Time Home Buyers:
1. Check your credit score.
You will have access to better mortgage rates with higher credit scores, so be sure to clean up your credit and allow some time for the process.
2. Determine what you can afford in a house payment.
Check out CENTURY 21's calculators for help in determining how much house you can afford. You should be able to calculate your debt to income ratio to make sure you know how much you can afford, not only on the down payment, but on your monthly mortgage payment.
3. Gather your documents for your lender.
Mortgage lenders typically request two recent pay stubs, your two previous years' tax returns, and your past two months of complete bank statements. Note: if your bank statements have numbered pages, you will need to submit the entire statement, even if that includes a blank page. For example: if your bank statement is numbered "Page 1 of 10," then you will have to provide all 10 pages, even if page 10 is blank.
4. Work with a licensed Realtor® and use www.realtor.com for property searches.
You should work with a licensed Realtor® when buying or selling a home. Contracts can be quite lengthy and complex and a Realtor® can help you navigate the documents and can be an objective advocate for you. When it comes to pricing and selling a home, Realtors® know the local market and have access to the most recent information. Use caution when using sites that aren't always up to date. If you don't have a Realtor®, I recommend www.realtor.com to locate a Realtor® and to search properties.