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A man deciding to buy a house

2 Important Money Moves for a First Time Home Buyer

Category: Finance

Purchasing a home can be both nerve-wracking and thrilling at the same time. This is especially true, for first time home buyers because it is difficult for you to know what to expect.

The learning curve is quite steep, but a majority of the issues can be solved by carrying out some homework. Therefore, before even starting to source for your housing grant in Ogden, Wasatch Peaks Credit Union suggests you learn these moves.

1. Define your down payment

It takes an effort to put together a down payment for your new home. Luckily, there are defined programs that can help you to qualify incomes. Although every state has a different approach, most of the money is sourced from the Home Investment Partnership Program which acts as a federal block grant, for the creation of affordable housing. Talk to housing financial service providers to get help on what to do.

2. Check your credit

Your credit score is the most critical factor when it comes to the qualification of any home loan. Additionally, the standards rise depending on the score that you need, and its effect on the overall cost of the loan. Paying bills on time every time does not guarantee you a stellar credit record. That’s because the comparison of the amount that you use with your available credit limit can negatively affect your score.

As such, the higher the utilization, the lower the score will be and vice versa. Therefore, it is wise to obtain your credit report and score to get knowledge of where your credit stands.

When starting the project, ensure that you speak to reputable mortgage lenders. Reason being, you will need someone honest and patient enough to teach you on other steps for first-time buyers. Before signing the contract, get a second opinion to make sure that you are not making a mistake, or you are not paying more than you should.