Tips for First-Time Home Buyers

Model House and Set of Colorful Keys

Buying a House in 2023

Buying a home for the first time can be complicated. There are lots of steps, tasks, and requirements to follow, and you don’t want to make a costly mistake.

Here’s a rundown of what you should think about before you buy to help you get the most out of your purchase.

Improve Your Credit Score

Improving your credit score takes time and effort, but it is possible. Here are some tips to get you started:

  1. Check your credit report for mistakes – It’s important to regularly check your credit reports for any errors or incorrect information that could be damaging your score.
  2. Pay your bills on time – Paying your bills on time is one of the most important factors for maintaining a good credit score.
  3. Keep credit card balances low – Keeping your credit card balances low will help improve your credit score. Try to keep your balances below 30% of your available credit.
  4. Limit applying for new accounts – Opening too many new accounts at once can have a negative impact on your credit score.
  5. Use different types of credit – Having a mix of different types of credit, such as installment loans and credit cards, can help improve your credit score.

SAVE FOR YOUR DOWN PAYMENT

A minimum down payment will most likely be required, depending on the loan. Expect to pay at least 3% of the property’s purchase price.

How much you’ll put down on your home depends on the type of mortgage you receive. The typical mortgage down payment ranges from 3.5% to 20% of the property’s purchase price.

If you put down less than 20%, you may be required to pay private mortgage insurance (PMI) or other fees.

Things To Know About Down payments

  • The size of your down payment has a direct impact on the interest rate your mortgage lender will set for your loan. The larger the down payment you offer your lender, the lower your interest rate may be.
  • A larger down payment generally means you’re a less risky borrower, and a less risky borrower means a lower interest rate.
  • It’s now possible to get a mortgage for as little as 3% down, although some loans (like Department of Veterans Affairs (VA) loans and U.S. Department of Agriculture (USDA) loans require no money down.

FIND A REALTOR AND A LENDER

Real estate agents are home-buying experts who know the local market and can take you to houses that meet your needs in your target area. They make finding the perfect home much easier and faster.

Now is the time to start researching lenders. Ask for recommendations from friends and family and conduct online research to find someone who will work well with you and your needs.

GET PRE-APPROVED

Mortgage pre-approval is a critical step in the home-buying process that you should not overlook in 2023. Getting a mortgage preapproval accelerates the lending process. If you find a home you like and need a loan quickly to buy it before another prospective homebuyer does, being preapproved will allow you to secure the purchase sooner.

A preapproval letter shows you have earnest money to put down on a property and will help you in your house hunting in any real estate market.

MAKE A WISHLIST

What kind of home do you want in terms of square footage, features, and so on? Make a list of your non-negotiables.

Are you ready for your dream home? Let Shawn Realty help you find that perfect home for you and your family.

Home Inspection: Radon (Part 2)

Home Inspection: Radon

Radon level affects home indoor air quality significantly.  More and more we spend time indoor, it’s the one test you can do for you and your family.  The level is affected by geological locations, so check out 1. EPA Map, 2. Find Testing kit and  find mitigation professionals. if needed.

Radon level is directly linked to possibility of getting lung cancer.

 

EPA Radon Zones:

https://www.epa.gov/radon/epa-map-radon-zones-and-supplemental-information#datainfo

Find a Radon Test Kit or Measurement and Mitigation Professional

https://www.epa.gov/radon/find-radon-test-kit-or-measurement-and-mitigation-professional

Oregon Radon Awareness Program Indoor Radon Test Results Summary (by Zipcode in Oregon Metro Areas)

https://www.oregon.gov/oha/PH/HEALTHYENVIRONMENTS/HEALTHYNEIGHBORHOODS/RADONGAS/Documents/Radon%20Risk%20Level%20Zip%20Code%20Table%202023.pdf