Tips For First-Time Home Buyers
Buying your first home is a tedious yet exciting process. First-time home buyers though, often face a few roadblocks that repeat buyers don’t. This blog will help you make your home-buying process faster and smoother. Here are a few guidelines to help you navigate the process:
Set a Budget
As you have learned in previous blogs, it is important that you do not spend beyond your financial limits. Before you plan to buy a home, do a quick budget estimate then revise the budget or revise your list of potential houses.
Make a Checklist
Do not consider home-buying an easy and emotionless process. It takes a lot of hard work to obtain your dream home especially when you are buying for the first-time. As you are new to the homebuying process, it is advisable to a make a wish-list and discuss the list with your family members. Should you fall in love with a property while touring, take out your checklist. You need to be firm on your must-haves while making sure you are within the budget. Compare and contrast your homes to decide which items are most important.
Never Compromise on Location
Location, location, location. It is important to know the area where you wish to purchase. Should you choose to buy a house in a bad school district or on a very busy street, who will potentially buy it in the future? Generally, first home buyers are excited to purchase homes and forget that they may need to sell it again in the future. Most families with children generally do not consider buying homes in busy areas so it is important to consider your future buyers.
Know your Market
Remember, the asking prices for houses are often negotiable and are not always indicative of their true value. The best way to research the housing market is to compare similar homes on the market in the same area. Check for comparable such as the number of rooms, any upgrades, and if it has a pool or another amenities. Take notes and check what other houses have sold for in the same area.
Save Enough for Down Payment
When you go for the mortgage loan approval, you will need to make an initial deposit to the lender and agree to pay the balance later as a monthly mortgage payment. The higher the down payment, the less you will need to pay as your mortgage payment.
Read your contract before you sign it
If you are a first-time home buyer, you may be excited about signing the deal as quickly as possible. Buying a home is probably one of the biggest investment in one’s life, so you need to educate yourself and understand the terms of the contract. Should you find a confusing clause, ask your agent or loan offer for clarification. Once you are confident to sign the contract, you will be relieved as you will be fully aware of what you are signing.
To learn more about the first-time homeowner process, contact United Financial Counselors to learn about the various assistance programs that could be available to you.