Few life events are more exciting or complex than buying your first home. At times, getting together enough savings for a down payment can seem impossible. And finding the time to deal with endless paperwork can be challenging. And once you move in you'll want to consider how you'll protect what will become one of your most valuable financial assets - your home. At Harborstone we want to be the resource that helps you get from your dreams of home ownership to keys to your new front door.
What To Consider
Saving for a down payment
One of the hardest parts about buying your first home is saving for a down payment. The good news is that some retirement plans allow you to borrow from your account for part of your down payment, as long as you pay it back into the account later on. If you are self-employed or looking for an additional way to save for a home, consider a Roth IRA as a savings vehicle as you can withdraw from that account for a first time home purchase. A regular, monthly savings plan can also help you accomplish your goal. There are mortgages available that require little or no down payment. A Harborstone Mortgage Advisor can help you identify a mortgage product that best fits your situation.
The following tools may be able to help you get on the right track to saving for your new home:
- How much will my savings be worth?
- What will it take to save for a home?
- What's it worth to reduce my spending?
Credit check
An important part of the mortgage application process will be checking your credit. You may want to meet with a Harborstone Mortgage Advisor prior to applying for a mortgage to discuss how you can order credit reports to check your current status and "polish up" your credit rating by paying down existing debt.
Figure out what you can afford
Before you start shopping with a realtor, it is important to figure out how much you can afford to pay monthly for a mortgage. By meeting with a Harborstone Mortgage Advisor, you'll be able to identify exactly what type of home you can afford. By clarifying the financial implications of purchasing a new home, you'll be able to enjoy your new home search.
Protecting your home once you buy
Once you purchase your new home it is important to protect it with adequate insurance coverage. Homeowners insurance can protect you in three ways. First, the policy covers sudden and unexpected damage to your home - the dwelling itself. Second, it provides coverage for the contents of your home. Third, it provides a level of liability protection for claims arising from the actions of you and your family.
How Harborstone can help
Harborstone is here to assist you buy the home of your dreams. Visit our comprehensive Mortgage Center to research, plan, and purchase a home.