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If you are an artist or a creative individual, owning a home may seem impossible. But to be honest it is possible. I have coached many artists and designers and also help them to plan for their future and how to make plans for their finance so that you can purchase your first home.
Most first time home buyers have a hard time navigating through the process on their own and often feel overwhelmed by all the hidden details that go into buying a home. New experiences are always going to be a little overwhelming, but here are some tips that will help you feel more confident in your decisions.
Understand Your Credit Report
A credit score and a credit report are different things. A credit score is just a number that reflects all your financial habits, but the credit report goes into more details about those spending and saving habits. Your credit score is important, but lenders will also look at your entire credit report when deciding whether or not to lend you money. It will also determine the rate you get on your loan as well.
You can learn a lot about yourself by taking the time to understand your credit report. It may be surprising what you find on it. If you find an error, it can be fixed which will help your credit score. It will also help you inform future decisions about spending habits to help improve your credit report before applying for a loan.
Knowing Your Budget
Even though you will have an idea of what you can spend on a home by the loan you receive, you may not want to spend all you qualify for. You should look at your budget to make sure that you can live comfortably with how much you spend and not strain your finances too much. How much you can afford to spend on your home will be determined in large part by your current finances and how much of your income already goes towards paying off debts.
Being able to pay a 20% down payment on your home will also help you with your finances. Finding an app that you can use to help you save money and setting up a separate savings account just for your down payment are important ways you can track your progress and get ready to buy a house.
Working With a Real Estate Agent
One of the best decisions you can make is to work with a real estate agent during the process. An experienced real estate agent will help you be able to work through the hardest parts of buying a house that is especially confusing for someone buying for the first time.
They can help you find a house you feel good about because they know the area and the local market. They will also be able to help you negotiate for a good price on your dream home. Asking your friends or family members for recommendations for a good real estate agent is a good place to start.
Home Inspections
Home inspections are important because they will inform you about red flags about the house. You will want to know about any potentially hazardous or dangerous problems with the house before you move in. You can find out from the experts about problems that need to be fixed and work that into your negotiations.
