5 Tips for First Time Home Buyers
Buying a home can be overwhelming especially if this is your first experience. There are a lot of moving parts that go into purchasing a home; however there are some steps that will help you be prepared for the buying process. Here are Five tips that will help home buyers before and during the process of purchasing a property.
First, get approved for a mortgage. Many individuals only consider the monthly mortgage cost when determining the type of home that will fit in their budget. There are many other items that make you qualified for a loan like outstanding loans and assets so get approved first. Many real estate agents will ask to see the approved mortgage before working with you to ensure you are looking at homes that will best match your budget.
Keep in mind there are other expenses to consider when budgeting for your first home. Theses other expenses can include: property insurance, taxes, special tax assessments, homeowners association dues, maintenance, electric and water bills. Property taxes and insurance can change year after year too. Typically property taxes and insurance increase year after year, so make sure to keep that in your budget.
TIP: Homebuyers who put 20% or more down don't have to pay for mortgage insurance when getting a conventional mortgage.
Find a Real Estate Agent
The process of purchasing a home can be overwhelming, especially for first time buyers so get some assistance. Find a real estate agent that understands what you are looking for in a home. To help you find the right agent try getting some references from friends and family. If anyone has a reference, ask for a referral for a home inspection company too, you'll need this later on. If you find agent on your own ask them for references.
Expect the Unexpected
The process takes a lot of planning and sometimes the unexpected happens. Maybe the home inspector missed some broken gutters that need to be replaced because it’s raining season. As much as you want to be prepared, sometimes the unexpected will happen.
Be Open Minded and Take Your Time
This is an exciting time in your life so take your time. This is most likely a long-term investment so, don’t rush into anything that you may regret later. Find a home that fits your lifestyle and budget.
Many individuals have an idea of what they would like in a home, 3 bedrooms, 1 study, 3 bathrooms, 3 car garage, walk in closet and the list goes on. Be open minded and you might find something that works better for your budget but doesn’t hit every single item on your list. You'll be happier long term.