Purchasing your first home is a big milestone in your life. Before closing the deal on your home, you want to make sure it is exactly what you need and want. We compiled a list of tips for first time home buyers to help you out along the way:
1. Attend a First Time Home Buyers Seminar and Ask Questions
Just like studying for a test or buying your first car, you need to research and learn about the process before jumping right into it. Attending a first time home buyers seminar is a good idea because you will receive tips on where to buy, financing your purchase and maintaining your home once it’s bought. Not to mention, most seminars are free!
2. Know How Much You Can Afford
Calculate how much money you can afford to spend on a house and then leave some room for any mishaps or unknown additional costs. You must be realistic with the house you want vs. the house you can afford. Just because you can afford the mortgage payments doesn’t mean you can afford to own a home. Take a look at your monthly spending habits and make any changes necessary to leave you with extra cash in the bank. Little things like bringing a lunch to work instead of eating out will add up to make a difference in your bank balance in the long run.
3. Know Your Credit Score
Before shopping for a mortgage, it is important you know what your credit score is. Mortgage lenders will thoroughly check your credit report and make decisions based on how creditworthy you appear to be. There is a possibility you could lose money or your dream home if you don’t check your credit score first. It’s a good idea to check it well before you go mortgage shopping, this way you know what your score is and you can work to increase it if needed.
4. Research Mortgage Options
Now that you know your credit score, it’s time to go mortgage shopping. Majority of home buyers will take out a loan or mortgage to pay for their house. There are many options out there for mortgages, the challenge is finding the right one for you. When deciding on a mortgage, think of your future plans. If you are buying the house just to flip it and sell it within a couple years to make money, then an adjustable rate mortgage would be more suitable for you versus a fixed 30-year mortgage. Take time to shop around and see how banks compare and make sure to ask about the types of loans, terms and amounts.
5. Find the Right Real Estate Agent
This part of the process is so important because they will be the one who finds your dream home for you. Finding an agent that you can trust and who understands your wants and needs is the first step. Ask family and friends for any recommendations or do your research and read reviews. Remember that many real estate agents specialize in certain areas of towns or types of properties, so be sure to choose one that fits your needs.
6. Get a Home Inspection
If you’ve been reading our previous blog articles, you know how important a home inspection is. It will ensure that there are no hidden repairs that need to be fixed and you are buying exactly what you are paying for.
7. Read Before You Sign
The final step of the process is signing all of the papers necessary to make the home officially yours. You may want to warm your hand up for this. It will take some time, but make sure you read and understand each paper before signing it. If you quickly whiz through every paper, it could lead to trouble down the road. Feel free to hire a lawyer to represent your interests during the closing process to take the pressure off yourself, or bring someone who has been through the process before and can help you.
We want your first home buying experience to be an enjoyable one, not a stressful one. By hiring one of our experienced Sales Representatives, we can ensure to make it just that.