Buying your first home is a major life milestone, but it can also be an intimidating experience, especially with so much at stake. What do you need to secure a mortgage loan, and how do you get the lowest rate possible? Should you hire an agent? What do you do once you find your dream home? If you’re planning on buying your first house, the tips below will help you navigate the process.

3 Tips for First-Time Home Buyers

1. Start Saving Your Down Payment Early

The FHA offers several programs with down payments as low as 3.5%, but private lenders will want you to pay at least 20% up front. The more you put down, the lower your interest rates and other fees will be, so start saving as early as possible.

2. Clean Up Your Credit

Request a copy of your credit report, and dispute any errors as soon as possible. In many cases, having mistakes removed from your report will bump your score up enough to impact your interest rate. Paying down debt will also decrease your credit utilization, dramatically increasing your chances of getting a mortgage loan on the first try.

3. Get Pre-Approved

Taking care of the mortgage loan paperwork before you go house-hunting will get one of the most stressful parts of home buying out of the way early. Lenders also tend to take offers backed by a pre-approval letter more seriously, which puts you in a stronger negotiating position.

4. Find a Real Estate Agent

A savvy real estate agent will provide you with critical insight, helping you narrow down your options and notifying you immediately of new properties that meet your needs. They have extensive knowledge of the neighborhood, trends, and market conditions. They’ll use their experience to help you settle on a reasonable offer price and craft a negotiation strategy, ensuring you get a fair deal. 

For over 80 years, North Jersey Federal Credit Union has helped customers throughout Passaic County, NJ, achieve the dream of home ownership. Their friendly, committed staff members have a wide range of affordable mortgage loans available, and will work with you to find the perfect program for you. Visit their website to learn more about their mortgage options, keep up with news and updates on Twitter, or call (973) 785-9200 with any questions.