Buying your first home is a big deal! It’s exciting but can also be pretty nerve-wracking. Whether you’ve been dreaming about purchasing an oceanfront home in one of the best neighborhoods in Naples, or a charming bungalow in a trendy suburb near Los Angeles, tackling the basics of the home-buying process is often the first step.
Are you ready to begin the complex and sometimes intimidating homeownership journey? There are so many things to consider before you put in an offer on that perfect house for you and your family! This post will give you some advice for buying your first home.
Before You Buy A House
First and foremost, ask yourself this question: Is this the right time for me to buy my first property? A home mortgage will probably be the most significant financial decision you commit to in your lifetime, so you need to be sure about it. Make sure you are financially prepared, do necessary local research, and be up for the challenge.
You also need to figure out why you are buying. If you move around every two or three years, you’re probably better off renting, but if you have children and you want them to remain in the same schools for the next nine years, buying is probably the way to go. It all comes down to personal preferences and circumstances.spe
Being aware of the real estate market is another critical part of the process. Today’s real estate landscape is dominated by trends such as high home prices, dwindled inventory, fierce competition, and increased demand for properties. All of that means you have no easy task if you decide to jump off looking for a house to buy.
First-Time Homebuyer DOs
Prepare Yourself Financially
This is a major part of buying your first home. You’ll need to have solid savings to face not only the needed down payment but additional process expenses such as property taxes, homeowners insurance, and closing costs. To get a loan that benefits you in terms and rates, you’ll also need a good credit history and score. Once you decide to start buying your first home, create a folder and put all your documentation together. You may need bank statements, tax returns, recent pay stubs, W-2s, and more.
Get Mortgage Pre Approval
Lenders will scrutinize every single corner of your financial life to pre-approve you for a mortgage. While the process can be pretty intimidating, it is also crucial to achieving your ultimate goal. You’ll need employment verification documents, proof of a steady income, evidence of good credit, and in some cases, proof of assets. After submitting your paperwork and getting pre-approved, you’ll have between 60 and 90 days to find a home before the approval expires.
Find A Real Estate Agent You Trust
Having a trusted real estate agent is an intelligent decision you won’t regret taking. Your agent is a specialist and will guide you in every step of the process and assist you in tasks such as previewing properties you may like, narrowing down potential neighborhoods, negotiating prices, and much more. Make sure you pick your agent based on their experience, referrals, and good reviews. Also, conduct a background check with the state Department of Real Estate.
Go House Hunting In Your Price Range
Once you start looking for houses online; make sure to stay in your price range. Your real estate agent can provide you with valuable market expertise and additional resources to find a home, including the Multiple Listing Service (MLS). Do some research about neighborhoods you like and check for schools, crime rates, and commute times. Once you narrow the areas down, go to open houses and visit the locality at different times to see traffic conditions, how comfortable people are outdoors, and noise levels.
First-Time Homebuyer DON’Ts
Don’t Look For A House Unless You’re Financially Qualified
Before looking for actual properties, make sure you know what price range you can afford. How? By getting prequalified by a mortgage lender. Believe us: The online mortgage calculators are not accurate enough in predicting what exactly you can purchase. Only your financial specifics can.
Don’t Rush Your Purchase
Don’t let anyone rush you in the process of buying your first home. Take your time to educate yourself as much as you need about your local market. Whenever you feel ready to place an offer for a home, do so quickly and aggressively.
Don’t Fall In Love With A House
Friendly reminder: The perfect house doesn’t exist. Finding that “unicorn” home that immediately meets all your present and future criteria is not rare but technically impossible. With that being said, try not to fall in love with a house you think is perfect, especially if that house is on the open market. In the best-case scenario, you’ll end up overpaying for it; or worst, you’ll get outbid and compare that house with every future home you’ll see.
Don’t Let A Listing Agent Represent You
Any listing agent’s best interest is in helping the seller get the biggest possible amount of money for the property. Buying a house is one of the highest financial transactions you’ll embark on in your life, so you need someone in your corner. Do your research for a good buyer’s agent.
Don’t Trust Blindly In Online Home Values
Believe it or not, consumer real estate websites are not the most reliable sources to determine a property’s actual net worth. There’s a more trustworthy way to estimate value than a fancy algorithm. First, look at recent properties sold in your area, then compare exterior and interior features along with square footage and location.
Don’t Underestimate Expenses
Have you ever heard the saying, “Once you buy a house, things start breaking”? Well, it is true. Renters frequently rely on landlords for utility and repair expenses, but all that changes once you buy your own home. To be ready for all of those unexpected expenses, be sure to have around 1% of the purchase price for yearly repairs, home maintenance, and significant landscaping work.
