Anyone who is prepared to buy their first home and has established financial security is often excited for the new step in life. Buying a new property can make it easy to settle down and make an investment that secures your financial future. To enjoy a smooth process without complications, there are a few tips to follow for first-time home buyers.
1. Get Pre-approved Before House Hunting
Many buyers make the mistake of procrastinating with getting pre-approved for a loan before they begin shopping around for a property. Taking the extra step ahead of time will allow sellers to take you seriously when you’re ready to make an offer. You may also lose out on a bidding war if the other buyer is already approved for a loan.
2. Determine Your Budget
Use a mortgage calculator to determine what you can afford before you begin looking for a home. You’ll need to calculate your household income and factor in your monthly debts and down payment that you want to make. It’s also important to consider extra expenses that will come with owning a new home, which includes property taxes, HOA fees, utilities, and homeowners’ insurance.
3. Schedule an Inspection
According to cbsnews.com, the seller of a home will likely hire their own inspector to find repairs that are needed, but you should still hire your own professional that you can trust. The inspector will identfiy any structural issues or electrical problems that may be present, which can influence the value of the home and the price of your offer.
4. Evaluate the Neighborhood
You may fall in love with a dream home that you’ve found, but it doesn’t mean that it’s in a great neighborhood. Visit the area at different times of the day to determine if the area is noisy or if there’s a high level of crime. You also want to look at the other properties in the area and check to see if they’re maintained well, which will influence the value of your own home over the years.
5. Put 20 Percent Down
According to nytimes.com, buyers are taken seriously by lenders if they can save 20 percent of the selling price of the home for the down payment that they make, which doesn’t include closing costs. This will help you to obtain a lower interest rate to ensure that you spend less on the property over the years before paying it off entirely.
The home buying process may be intimidating for first-time home buyers, but there are a number of tips to follow to ensure that you can complete the transaction successfully. With enough preparation, you’ll be able to find a property that is the right fit for several years to come.Tags: featured