What you need to know as a first-time homebuyer.

Buying a home is the biggest investment most people will make in their lifetime. When you’re ready to jump into homeownership, Cothran Homes has some advice to help you through the process of choosing and buying a new home. Here’s what you need to know as a first-time homebuyer. Put your credit in order. Your credit score makes a big impact on your ability to buy a new home. A high credit score (700 or above), for example, might qualify you for a lower mortgage rate. Check your credit report to see your score. Also look for any errors that could impact your ability to qualify for a mortgage. It’s not uncommon to find mistakes or to uncover a debt you didn’t know about. If your credit score isn’t where you’d like it to be, try paying down some credit cards. When you reduce your debt-to-income ratio and show a history of on-time payments, your score will increase. Avoid opening any new cards as each inquiry into your credit will reduce your score. If you have any questions about how your credit history will influence a lender’s decision, talk to a mortgage professional. Determine your budget. How much can you afford for a monthly mortgage payment? Bear in mind that your mortgage will include the property tax, homeowner’s insurance, and private mortgage insurance (PMI), which is required when your down payment is less than 20% of the home’s purchase price. Use a mortgage calculator to help you determine how much home you can afford. Get pre-approved. It’s always a smart step to get mortgage pre-approval before you start shopping for a new home. Pre-approval shows the seller that you’re qualified to purchase a home up to a certain price. You’ll simply need to provide some basic information, including proof of employment (two most recent pay stubs), bank statement, and tax return. With a mortgage pre-approval letter from your lender, you can shop with confidence. Learn about mortgage programs. In addition to a conventional mortgage, you might want to explore other programs. The  FHA (Federal Housing Administration) provides loans to people who have a low down payment (less than 20%) and less-than-stellar credit. VA (Veterans Affairs) offers 100% financing to veterans and active servicepeople. Make a priority list. It’s exciting to shop for a new home. There are so many choices! Keep yourself on track by creating a priority list before you start your tours. Be clear on how many rooms you need, what features are most important, and where your threshold for compromise ends. For example, if you want 2.5 baths, would you accept two full baths instead, or a two-car garage when your hope is a three-car garage? Consider the benefits of buying new. First-time homebuyers who have not handled maintenance for a new home appreciate the value of a new construction home. From the structure itself to the systems and appliances, your home is covered by a warranty. You don’t need to worry about replacing the roof or air conditioning system, both of which are very costly repairs. You also reap the rewards of energy efficiency that doesn’t exist in homes that were built even five years earlier. And finally, your new home is truly move-in ready. You won’t have to repaint the walls, replace the floors, upgrade the kitchen, or fix a single thing. Cothran Homes welcomes first-time homebuyers. We build communities of townhomes and single-family homes in the Greenville, South Carolina, area. Take a look at the floor plans we offer and our currently available move-in ready homes and townhomes. Then talk to us to make your first homebuying experience a truly positive one!