Buying a home can be such an exciting and intriguing experience, it can also be stressful. Planning properly beforehand is necessary if you want to get the best buy available. When you are buying for the first time, the lack of experience, if not properly managed, can be a hassle.
Best Tips for First Time Home Buyers
Follow these tips to help find balance and direction in the chaotic real estate market as you shop around for your first house. This guide will help you ease the process and you will get more done faster.
Start Saving Early
Buying a house is expensive. You will incur all kinds of costs, so it’s important to be financially secure before you start searching for your first home. The earlier you start saving, the better your chances of getting the house of your dreams.
Saving early will give you more flexibility with the kind of house and neighborhood you want. Your savings will also give you the ability to have enough money for your down payment. If you are looking to buy the house of your dreams, start saving now, if you have not started already.
Check Your Credit
One of the strong determinants of qualifying for a mortgage is your credit score. Your score will also impact the interest rate that lenders are willing to offer you. You have to check your score to know what end of the spectrum you fall on.
It is not enough to just check your credit score, if you need to do better, you should put plans in place to improve your credit score and make it stronger. You have to pay all your bills on time and ensure they are all reporting to your credit line. You should also keep your credit cards open, use them but you must be as frugal as possible. All of these contribute to a better credit score; do ensure you keep on tracking your score till you like what you see.
Get Pre-Approved
One of the first things to do when you’re ready to buy your first home is get pre-approved. Your mortgage pre-approval letter will put you on the fast lane to your homeownership.
To get pre-approved, you will have to tell a lender about your credit and assets. The lender pulls your credit details and will pre-approve you for a certain amount. This will give you an idea of what price range your future home will fall into.
Explore Mortgage Options
Always explore your mortgage options, talk to multiple lenders to find the best rates.You should do your research and be sure you are picking the mortgage option that works for you.
Several loans could work well for a first-time homebuyer. After comparing fees and interest rates, you can decide which one works for you.
Find a Real Estate Agent
Finding a knowledgeable real estate agent is important for first time home buyers. An experienced agent will help guide you through the home buying process. It’s important to check reviews, or ask friends and family who have purchased a home for recommendations on realtors in your area.
Talk to a handful of real estate agents and ensure that you take a deep dive into their experience. Also, inquire about their plans as it relates to helping you buy your first house. Finding an agent that works well with you is important, so take your time on researching the right one.
Don’t Forget Closing Costs
Real estate transactions are like a big engine with a lot of moving parts, one of such is the closing cost. The closing cost for your first home is one of the necessities of this complex system. Your closing costs will include anything not include in the price of the home; origination fees, title search, surveys, taxes, credit report charges. That’s why it’s important to start saving early.
Get a Good Home Inspector
When buying your first home, you’ll want to make sure you’re investing in a well-built home. The task of the home inspector is to ensure that the structure is sound and that you are safe in your new home. You should give the home inspector the free hand to do their job. Make sure you research a good home inspector and check out reviews.
It is recommended that you attend the inspection. Your home inspector will run through a punch-list of items making sure the home is safe. They’ll often times give you tips on what to expect when you move in and show you where things like your gas shut off valve is, or where there may be some room for improvement around the home.
Buy in the Right Neighborhood
Buying your first home is a big deal, so you want to make sure you buy in the right neighborhood. It’s important to research the neighborhood you want to live in, and think about your future there. Are you planning on raising a family in this house? Make sure you check out the school district.
Remember, this is an investment, so you’ll want to make sure you do your research ahead of time. Take a drive through the neighborhood before you buy to make sure it is the right fit for you.
Final Thoughts
Buying your first house can be an exciting experience. It’s important you start saving early and do your research ahead of time to know how to get the best out of it. It’s also important to have a qualified, experienced, real estate agent to help guide you through the process of purchasing your first home.
Are you thinking about buying your first home? Contact me today to get started.