First Time Home Buyer Tips

Are You Buying a Home for the First Time? 

Here are 6 Tips to Make It Easy:

Being a first-time homeowner can be very exciting and also a bit overwhelming. You may get unsolicited advice from family and friends. While some advice is useful, other tips may be completely unrelated to your situation. Here are six tried and true tips that you should follow when setting out to purchase your first home.

Checklist

It's always a good idea to create a checklist of items that are non-negotiable. No home will have exactly what you want, however, if you lead with your non-negotiables you will be a step closer to finding the perfect home.

Layout

You will be looking at a large variety of homes and it could get overwhelming and confusing. It also can be difficult when the decor and furniture is not to your liking. However, it is best to try and overlook things such as paint color, undesirable flooring or decor. You must focus on the layout instead. Are the rooms in desirable locations? Picture yourself doing daily activities and moving throughout the home to determine if it's right for you.

Additional monthly payments

Keep in mind that the mortgage payment isn't the only monthly bill you will need to pay when owning a home. Bills such as electric, heating and other maintenance can add money to your monthly budget. You can always ask for copies of monthly service bills to get a good idea of how much you will be spending.

Resell value

Even though you are purchasing a new home you also should consider a resale. Every home has the possibility of being resold and you don't want to get stuck where your resale value could be lowered.

Location

Many first-time homebuyers' have their mindset on a specific location. However, that area may exceed your budget. If you expand your search sometimes even just a few miles outside of your target area home, prices may be more affordable.

There is no perfect home

Unless you are willing to have a custom home built that can meet every need and desire, then you will likely not find the perfect home. Use your checklist and focus on the layout of the home. Stick to the items that you want the most and look for a home that has most of these options. You will likely have to make a few concessions.   However, with a little open-mindedness, you will get into a great home.

It can be frustrating as well as exciting as being a first time home buyer. Keeping an open mind and focusing on the layout will help you get into a home that is perfect for you and your family. For all of your real estate needs, contact the experts at Tampa Bay Realty and Investment Group.

What Affects My Credit Score?

Have you ever wondered what changes affect your credit score? 

One of the first things your lender will ask you when you apply for mortgage is, “What is your credit score?”  This is a very important factor that helps determine your qualifications for a mortgage. The higher the score, the better off you are when it comes to securing a good rate.

There are five basic factors that are used to calculate your credit score. The calculation is as follows: payment history (35%), debt to credit ratio (30%), length of credit history (15%), mix of credit (10%) and new credit (10%).

Here is a breakdown of each piece:

Payment History

This includes making payments on time for credit cards and other loans. This carries the most weight on your credit score and one or two late payments can decrease your score more than you might think. Try to pay every bill on time.

Debt to Credit Ratio

This piece relates to your credit cards. The amount of debt that you hold on your credit card is divided by the credit limit on the particular card. So the recommended ratio should be less than 30%. Do not max out your credit cards on a regular basis because your credit score will be lowered. Paying your balance, or keeping it as low as possible is key.

Credit History

It’s important to show that you have a solid history of getting credit and keeping credit. The longer your history is the better your credit score. If you have accounts that have zero balances you should still consider keeping them open as this will also increase your credit score.

Mix of credit

Lenders also look to see that you can maintain a variety of types of credit accounts. This includes retail accounts, credit cards, mortgage and car loans.

New credit

Every time you attempt to open a new credit card it will affect your credit whether or not you get approved.  Each attempt could lower your score 5 points. Try only opening one card at a time to keep your score high.

If you are in the market for a new mortgage your lender will look at a variety of factors determine to determine your interest rate. The credit score is a large factor in that determination. Properly maintain your credit score so that you can be on your way to owning your dream home. For all of your real estate needs contact the experienced professionals at Tampa Bay Realty andInvestment Group. Call 813-515-4882