Homeownership remains a hallmark of the American dream. When you reach the point where you are ready and able to purchase your first home, that’s cause for excitement and for pride! At the same time, it can also be a little daunting: It’s a big step, both in terms of personal lifestyle as well as finance.

Moreover, the home buying process itself can sometimes seem a little circuitous. With the right preparations, though, even first-timers can ensure a smooth and streamlined home-buying journey, from the mortgage application up through closing day. Here is a checklist to point you in that direction.

A Checklist for New Homebuyers

• Get your credit together. Before pursuing a home loan, make sure your credit score is right where you want it to be. If you have a lot of outstanding debts, try to pay them down as much as possible. And, ensure that you are up to date with any bill payments, which can impact your credit score.
• Ensure you have some money in the bank. Even with a great mortgage, you may still wish to make a down payment—typically 20 percent of the total home value, though this isn’t set in stone. Get a little nest egg in order before you start the mortgage application.
• Look at your budget. Along with your partner or spouse, take a good, long look at your household budget and figure out roughly how much you can afford to spend on a house each month. Keep in mind that, in addition to your mortgage, you’ll also have insurance, utilities, and property taxes.
• Avoid new credit. As you take out a new mortgage loan, one of the worst things you can do is to open other lines of credit—such as new credit cards. Try to avoid any unnecessary activity on your credit report.
• Gather paperwork. The home loans process requires you to submit plenty of documentation; get that documentation together now to make the process go smoother. Some pertinent documents to gather include pay stubs from the past couple of months as well as your income tax filings from the past year or two.
• Consider your mortgage term. Weigh the pros and cons of 15-year and 30-year mortgage loans and decide which one makes the most sense for you and your family. Reach out to us directly with any questions!
• Find a good agent. It’s vital to have a real estate agent who knows the area well, and with whom you feel comfortable. Don’t hesitate to interview a few different agents if you don’t hit it off with the first one you meet.

Get Help on Your Homebuyer’s Journey

As you embark on the home buying journey, you’ll want to have some expert guidance to keep you on the straight and narrow. An agent can provide that, and so can a qualified mortgage loan professional. To learn more about home loans and mortgage rates in Los Angeles and the surrounding area, reach out to our seasoned mortgage team directly.