Join our #CreditChat every Wednesday at 3 p.m. ET on Twitter and YouTube. This week, we discussed important things to know when purchasing your first home. Our #CreditChat panel included Douglas A. Boneparth – CFP Board Ambassador and Vice President at Life and Wealth Planning, Richmond American Homes, Martha Staten- Realtor and advocate for Personal Finance in schools, Rod Griffin – Director of Public Education at Experian, and Mike Delgado – Social Media Community Manager at Experian. We were also joined by several influencers in the personal finance community on Twitter. This deck features tips from: @RAHomes, @Douglasboneparth, @LeslieHTayneEsq, @MiriamSCross, @Lenda, @shermanwealth, @MoneyCrashers, @SouthStateBank, @WelshKristy, @Kasasa, @PiggyBanker, @MMarquit, @Wangarific, @DebtRoundup, and @RealKateHorrel.

1. Wednesdays | 3 p.m. ET
#CreditChat
What to Know When You’re a First-Time Homebuyer

2. Join our #CreditChat every Wednesday at 3 p.m. ET.
This week, we talked about important things to know when
buying your first home.
ex.pn/firsthome

3. Wednesdays | 3 p.m. ET
#CreditChat
How do you decide if you should be renting or buying
a home?

4. A mortgage calculator is a great
resource to see if buying is financially
viable.
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Wednesdays | 3 p.m. ET
#CreditChat
”
Richmond American
@RAHomes

5. You have to take a variety of things into
consideration. How much can you
afford? How long do you need the place
for?
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Leslie H. Tayne, Esq
@LeslieHTayneEsq

6. Consider how strong and stable your
cash flow is, plus your living
situation- how much flexibility do you
want?
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Wednesdays | 3 p.m. ET
#CreditChat
”
Miriam Cross
@MiriamSCross

7. Have enough for a down payment
and still have cash in reserve for
things that will come up.
“
Wednesdays | 3 p.m. ET
Lenda
@lenda
#CreditChat
”

8. Evaluate the likelihood of life events
occurring that could change your
financial circumstances.
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Wednesdays | 3 p.m. ET
#CreditChat
”
Brad Sherman
@shermanwealth

9. Ask yourself why you want to buy. Does
it make sense for your situation and
goals?
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Money Crashers
@MoneyCrashers

10. Wednesdays | 3 p.m. ET
#CreditChat
What are tips for getting the best rate on a home loan?

11. Get your debt to income ratio as low
as possible. You’ll get a better rate
and you’ll increase your credit score.
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Wednesdays | 3 p.m. ET
#CreditChat
”
Lenda
@lenda

12. First thing you should always do is shop
around. Don’t just settle for the first
rate you’re given.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Leslie H. Tayne, Esq
@LeslieHTayneEsq

13. Check your credit score and take steps
to improve it if necessary.“
Wednesdays | 3 p.m. ET
#CreditChat
”
South State Bank
@SouthStateBank

14. Look at credit unions and community
institutions when shopping for a
home loan. They tend to offer great
rates!
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Kasasa
@Kasasa

15. When in doubt, consult a loan officer
or financial advisor about your
specific situation. He or she may have
some insight.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Richmond American
@RAHomes

16. Wednesdays | 3 p.m. ET
#CreditChat
What should you do before applying for a home loan?

17. Take a hard look at your own finances
and expenses and shop around before
applying for a home loan.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Brad Sherman
@Shermanwealth

18. Keep in mind your mortgage payment is
only one of the expenses you’ll have. So
don’t devote 100% of your housing
budget to it.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Money Crashers
@MoneyCrashers

19. 1. Know what you can really afford in the
way of payment.
2. Get your credit in shape.
3. Shop around.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Kristy Welsh
@WelshKristy

20. Boost your credit score as much as
possible, make sure you know what you
can COMFORTABLY afford, and build an
emergency fund.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Leslie H. Tayne, Esq
@LeslieHTayneEsq

21. It’s also about what you shouldn’t do
- for example, try not to make major
credit purchases before your loan is
approved.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Richmond American
@RAHomes

22. Wednesdays | 3 p.m. ET
#CreditChat
How do you forecast a housing budget?

23. Start with a budget and cashflow for
your current situation. This will help
back into what you can afford/down
payment.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Douglas A. Boneparth
@dougboneparth

24. Identify ALL the costs involved.
Transfer fees, insurance, repair and
maintenance, deposit, etc. Then work
backwards.
“
Wednesdays | 3 p.m. ET
Piggie Banker
@PiggieBanker
#CreditChat
”

25. A good budget won’t just reflect your
mortgage payment. It’ll also factor in
extras like maintenance, HOA fees
and so on.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Richmond American
@RAHomes

26. The rule of thumb is that no more than
36% of your gross income should go
toward your total loan payment.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Kristy Welsh
@WelshKristy

27. Wednesdays | 3 p.m. ET
#CreditChat
What unexpected costs might you encounter when
buying a home?

28. Depending on what you’ve planned for...
insurance, maintenance, property tax
and utility price increases.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Money Crashers
@MoneyCrashers

29. Another excellent reason to avoid
straining your finances when buying a
home. There’s always an unexpected
cost.
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Leslie H. Tayne, Esq
@LeslieHTayneEsq

30. Be prepared for closing costs,
inspections and home
improvements.
“
Wednesdays | 3 p.m. ET
South State Bank
@SouthStateBank
#CreditChat
”

31. You might uncover some things that
need repair. Before you know it, you’
re redoing a kitchen and bathroom.
Expensive!
“
Wednesdays | 3 p.m. ET
#CreditChat
”
Douglas A. Boneparth
@dougboneparth

32. Location too. If you buy a house that’s
a little farther than where you work,
the cost of commuting will increase.
“
Wednesdays | 3 p.m. ET
Piggie Banker
@PiggieBanker
#CreditChat
”

33. It’s all about lifestyle. Before you decide to
buy, figure out what sort of lifestyle you plan
on having. And don’t view your primary
residence as a financial investment. It’s an
emotional investment.
#CreditChat
Source: @MMarquit

34. Start budgeting like you have the mortgage,
which will probably be higher than whatever
you’re paying now for housing. Use the
savings toward a downpayment. By budgeting
this way, you really start to feel whether or
not you can afford the house you think you
can afford.
#CreditChat
Source: @Wangarific

35. Don’t get lured into what the bank tells you
you “can” afford. Make sure you understand
your budget needs and what you truly can
afford.
#CreditChat
Source: @DebtRoundup

36. Be sure to set aside 20-30% of your monthly
payment for maintenance. Most new
homeowners have no idea how much it costs
to maintain a house. Heck, I’ve been home-
owning for over 20 years and I still get
surprised.
#CreditChat
Source: @RealKateHorrel

37. When you’re looking for a home, remember human
psychology. We often decide based on emotions, then try
to back it up with logic. Don’t fight it. Look until you find
the house you love. Then find reasons why you “shouldn’t”
buy it. Don’t look at a house based on stats and try to
convince yourself that you love it when you don’t initially.
#CreditChat
Source: @Wangarific

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