Buying a home is a big investment. Whether you're a couple getting your first place together, or a single person going it alone, purchasing your first home is a stressful, and emotional time, not to mention the financial strain if you haven't considered everything thoroughly. Wherever you are in the process, we're sure that you will find these 7 tips helpful when buying your first home
This is the single most important part of buying a home. Knowing what you can afford is not as simple as just having a budget for your mortgage. Many first-time home buyers forget to consider closing costs when purchasing a home. Don't forget to look into property taxes, and check with the realtors for any maintenance costs you might need to think about down the line.
Typically, a down payment is 20% of the asking price. It can be very difficult to obtain a mortgage for less than 20%. However, there are programs available in certain circumstances. Army veterans may be entitled to down payments as low as 3.5%. Check with your financial institution to see what programs may be available to you to lower down payments. Be aware that in almost all cases, a lower mortgage payment means a higher monthly payment. It is, however, a good option if you find it difficult to save such a significant amount of money.
You should never make a major purchase like a house without being aware of your credit score. Knowing your credit score before you even go into the bank means you already know what you can reasonably expect from the bank. It also means you can work on fixing any credit card discrepancies before even approaching the bank.
When the time comes, you'll be less likely to be tempted to look at listings beyond your price range. To further improve your credit, in the months leading up to your search, you should avoid any other major purchases, such as a car, or a small business venture.
You should make a clear wish list for everything you want, from your desired neighborhood, number of bed and bathrooms, and any extra rooms and amenities you must have in your home, Kitchen, so you'll know it when you see it. A lot of first time home buyers make one of two mistakes; you may believe you need to settle for something less than ideal to start with. While your starter home may not be the place of your dreams, it's still a major purchase that you'll live in for years, and you should be sure to get something you really want, and jump on it when you see it.
Many first-time buyers assume they need to look at a certain number of listings, or they find something they like, but want to keep their options open. As important as it is to choose something you can see yourself living in, it is equally important to jump on the right house quickly when it appears. Hesitating may cost you the home of your dreams. So keep an open mind, don't settle for somewhere that doesn't feel like home, but make sure you know what you're looking for, so you'll know it when you see it.
Choose your neighborhood carefully. Talk to people in the neighborhood about what they like about living in the area. Look into local amenities, and decide what's important to you. Once you've chosen your ideal neighborhood, look for the realtors who know that area.
In addition to insider knowledge about the people in the area and what the lifestyle is like, they'll be able to be more honest and up-to-date on what is available. They are more likely to already be familiar with the listing. They'll understand the area and its amenities, and have insights into property taxes, and concerns you may not think to ask. If it's a smaller community, they may also be known and recognized in the community, which can help you in the long run. https://www.realtor.com/
This comes up surprisingly often. First-time buyers, especially couples, tend to buy fixer-uppers as first homes. The idea is you can get a lot more house for a lot less. You just make a few updates as you go, over the next months of years. Be wary of this. A fixer upper can be a great deal, but more often than not, more money is sunk into your DIY projects than the cost of the house overall.
This is even more likely if you buy a fixer upper without any knowledge of the amount of work it will take. If you choose to go the DIY route, make sure you have someone who can accurately assess what can and cannot be fixed in the property you're looking at, so you don't end up buying a house that isn't worth fixing, or spending thousands on projects you can't handle without hiring someone.
A real estate agent, while helpful and knowledgeable about the process of selling a house, may not know you and your needs as well as family or friends. It is important that you make the final decision. But it's also a very overwhelming and sometimes daunting process. You may find yourself looking at a dream of a property, and suddenly be plagued with doubts. Also you may see yourself in a home you don't want, and feel pressured to make a decision.
You may forget things you needed to know about the property that will help you make a decision. Take a friend or family member, no more than two, to help you wade through listings and as an extra pair of eyes when you're visiting properties. Choose carefully. You want someone who has your interests at heart and understands your needs. If you're looking at a property you might want to use as rental income, take someone who has had tenants. If you do choose a fixer upper, bring someone with you, who can tell you if the investment is worth it.
Buying a home for the first time can be a daunting process. Many first-time buyers don't assess the costs of everything involved in buying a home. You may feel pressured to choose something you aren't 100% happy with, or not be familiar with the neighborhood or area you want. But by following our tips, we're sure you'll be confident enough to get the starter home you dream of!
I started this blog to provide advanced home improvement tips, guiding you towards a better and more comfortable home, kitchen, garden experience. I deliver more than home guides, and motivate people to get nice home!