Tag Archives: first home

Budgeting Checklist for Buying Your First Home

buying-home

Buying your first home can be an exciting but overwhelming experience. The right bank and agent can take most of the hassle off of your shoulders. Make sure you’re checking these items off of your list to allow for a smooth home buying journey – without breaking the bank.

Check Your Credit Score

Making sure your credit score is high and on the rise will allow you the opportunity for better rates! Look for any issues with your report and contact the credit bureau to have them fixed.

Gather Your Documentation

Have your documents in order when coming to the bank to discuss a pre-approval letter and loan. Contact us in advance to find out which documents we require. To help you get started, you should plan to have the following documents when applying:

  • Income and employment verification – Last two years’ tax returns, W-2s, 1099s, and your last few pay stubs
  • Identification – A primary form of photo ID (driver’s license or passport), and a secondary form of ID (Social Security card, student ID, insurance card, etc.)
  • Financial condition – Bank and brokerage account statements including retirement accounts, proof of funds to close, or a gift letter (if your down payment is coming from a gift)

Secure Pre-approval

A pre-approval letter shows a buyer that you are serious and have the funds to afford the home. This also lets you know how much house you can afford, so you don’t start hunting for houses that are out of your budget.

Decide On Your Max

Even if you can afford a certain amount, not spending it all may be wise. Scale back a little and decide on the price you’re willing to spend. Hold yourself accountable to not pass that limit.

Think Of Additional Expenses

Repairs, maintenance, monthly bills, moving costs, and closing costs will all factor into your budget. Know how much income you earn each month and subtract all of these costs; then subtract your daily expenses (such as gas and groceries). This will show you how much you will actually have to put toward your mortgage payments. Deciding on your max budget will help you know your purchasing capacity and live more comfortably.

If you’re looking for a great rate on your mortgage, contact us or stop by the bank. We will be happy to help you along the path to buying your dream home!

Three Things to Look for in a Starter Home

Mortgage

If you’re in the market for your first home, congratulations! Becoming a homeowner is an exciting step on your financial journey. At Iowa State Bank, our dedicated mortgage lenders are here to help you find the best financing option for your new home. Remember to stop in and secure a pre-approval letter before you start your home search.

After speaking with a mortgage lender to help determine your family’s ideal price point, it’s time to start viewing potential homes. During this process you’re bound to find a home you’ll fall in love with, and others that may send you running for the hills. As you ride this rollercoaster of an experience, we recommend searching for the following three things in your family’s ideal new house:

  1. Good Bones. Starter homes are a great option to find a great house within an affordable budget. To ensure your investment lasts for the long-term, we recommend taking a hard look at any foundational cracks, leans, or other structural ailments. While the rest of the house could look fantastic, these three issues should be instant red flags signaling you to continue looking at other homes.
  2. Cohesive Neighborhood. The people you surround yourself could be the individuals you see at 6:00 AM taking the trash out, or the partiers you have to ask to turn down the music at 11:00 PM. As you tour properties, don’t be afraid to chat with any potential neighbors and see if there is any information they can give on families you’ll be living alongside.
  3. Suitable Layout. While some renovations are certainly possible when purchasing a starter home, obstacles such as load-bearing walls could limit your expectations. Consider the overall layout of the home at the showing, and see if you could picture yourself the ways it is. If the answer is no, then you may want to find a few backup options should the renovations not be available within your budget.

The perfect home will look different to everyone. If you’re ready to start searching for your family’s new house, our experienced mortgage lenders are here to help. We work with many successful local realtors, and we would be happy to refer you to the one that fits your needs best. Give us a call or stop by to begin the search for your home today.