Summer is a popular season for first-time homebuyers to begin their journey toward homeownership. Longer days, more active listings, and the excitement of a fresh start make it an ideal time to start shopping.
No matter the season, a successful home purchase begins long before you tour your first property. By making a few smart financial moves now, you can position yourself to confidently navigate the summer real estate market and secure a home that fits your needs and budget.
With a few smart moves early on, you’ll be better prepared to act quickly and confidently when the right home comes along. Here are some important steps you can take to set yourself up for success.
Check Your Credit and Strengthen It If Needed
Your credit score plays a major role in the mortgage process. It influences the interest rate you will be offered and the loan programs for which you may qualify. Before you start shopping, request a copy of your credit report from all three major bureaus and review them carefully.
As you review your credit reports, look for any errors, such as incorrect account balances, late payments you made on time, or accounts that don’t belong to you. Pay close attention to your credit utilization ratio, as well as your payment history, the length of your credit accounts, and any recent inquiries. Addressing inaccuracies and understanding these key factors can help you take targeted steps to improve your credit profile before applying for a mortgage.
If your score is lower than you would like, there are steps you can take to boost your credit score before buying a house. Paying down existing debt, making all payments on time, and avoiding new credit inquiries can make a noticeable difference in a few months. Even a small improvement in your credit score could save you thousands of dollars over the life of your loan.
Build Your Savings
Beyond your down payment, purchasing a home comes with other costs such as closing costs, moving expenses, and initial home repairs or furnishings. Building up your savings now can help you avoid financial stress later.
Aim to have enough saved for:
- A down payment (which can range from 3 to 20 percent depending on the loan type)
- Closing costs (typically 2 to 5 percent of the home’s purchase price)
- An emergency fund for unexpected repairs or expenses once you move in
Setting aside a little extra each month can add up quickly, especially if you automate your savings.
Get Pre-Approved for a Mortgage
One of the smartest moves a first-time buyer can make is to get pre-approved for a mortgage loan before beginning the house hunt. A pre-approval shows sellers that you are a serious and qualified buyer, which can give you a competitive advantage in a busy summer market.
During the pre-approval process, your income, assets, debts, and credit history will be reviewed to determine how much you can be approved to borrow. This not only gives you a clear price range for your home search, but also helps you spot and address any potential financing issues early on.
Pre-approval also helps you better understand how much home you can afford. With a pre-approval letter in hand, you’ll be able to move quickly when you find the right home. Keller Home Loans can help you explore your options and find a loan program that fits your financial situation and goals.
Define Your Budget and Stick to It
It is easy to get caught up in the excitement of finding your dream home, but it is important to stay grounded financially. Just because you are approved for a certain loan amount does not mean you should spend up to that limit.
Think carefully about your future monthly mortgage payment, including property taxes, homeowners insurance, and potential HOA fees. Make sure it fits comfortably within your budget while leaving room for savings and unexpected expenses. A well-defined budget keeps you in control and helps prevent buyer’s remorse later.
Prioritize Your Must-Haves
With many homes hitting the market in summer, it helps to know what you truly need versus what would simply be nice to have. Make a list of your top priorities such as location, number of bedrooms, or a certain school district.
Having clear priorities can help you act quickly and decisively in a competitive market. It also helps you stay focused and avoid being swayed by cosmetic features that could cause you to stretch your budget unnecessarily.
Consider Additional Costs of Homeownership
First-time buyers often focus heavily on the purchase price, but it is equally important to plan for ongoing costs once you own the home. Maintenance, utilities, property taxes, and homeowners insurance can add several hundred dollars or more to your monthly expenses.
Understanding these costs upfront ensures that your home remains a blessing rather than a burden. Factor these into your overall budget and remember that regular maintenance can prevent more costly repairs down the road.
Partner with a Trusted Team
Buying your first home is a big milestone. Surrounding yourself with a team you trust makes all the difference. Work with a knowledgeable real estate agent who understands the local market and can guide you through the offer and negotiation process.
Choosing an experienced lender like Keller Home Loans also ensures that your financing goes smoothly. We are committed to helping first-time buyers like you navigate the loan process with confidence, providing guidance and support at every step.
Start Your First Homebuying Journey with Confidence
Stepping into the summer homebuying season is exciting, but preparation is key to making smart, confident decisions. By checking your credit, building savings, getting pre-approved, setting a budget, and understanding the full costs of homeownership, you set yourself up for success now and well into the future.
At Keller Home Loans, we are proud to support first-time buyers on their path to homeownership. Whether you are just beginning to explore your options or you are ready to start house hunting, we are here to help you make your move with confidence.
Ready to get started? Contact Keller Home Loans today and take the first step toward your dream home this summer.
