Although there has been a recent increase in overall mortgage fairness, first-time homebuyers in the United States face unprecedented challenges in the current housing market.
Mortgage rates have reached a 23-year high, and historically disadvantaged groups — predominantly Black, Hispanic, and Native American communities — continue to experience racial discrimination.
Still, becoming a first-time homeowner might be a realistic objective for well-organized consumers who conduct due diligence. TheGrio, with help from Bankrate, has a few pointers to help consumers navigate their journey to a successful house purchase.
- Research the homebuying process
Prior to searching for the ideal house, it’s critical to comprehend the homebuying process. Determine what you need and want in a house; check out terminology and phrases related to buying a home; learn about mortgage rates; and assess whether you can imagine living in the property for years to come.
- Pull your credit report
For a first-time homebuyer, a higher credit score equals a better mortgage interest rate. Get free credit reports from Equifax, Experian, and TransUnion to thoroughly understand your credit situation.
Several factors – including credit card limits, overdraft protection levels, and the portion of credit you currently utilize – determine your credit score.
It’s crucial to ensure you pay all your bills on time to avoid setbacks, and use free services to monitor your credit report and remain up-to-date about what’s impacting your score.
- Determine your budget
In the case of a bidding war — not unheard of in the current market — you will have some leverage to exceed the asking price if you look for homes below your budget, according to Bankrate.
While creating your budget for the amount of housing you can afford, consider recurrent expenses you will have to pay once you purchase, such as utilities, insurance, property taxes, mortgage, and HOA…
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