Six Tips for First-Time Homebuyers
Buying your first home can be intimidating. After all, making the leap from renting to ownership should not be taken lightly. However, with proper preparation and planning, you’ll find it’s not as scary as it seems. Here are six tips for first-time homebuyers.
1. Make Sure You’re Ready
Before purchasing a house, you’ll need to be willing to plant some roots. It takes time to build equity and experts suggest staying in a home for at least five to seven years to make it worth the investment. Plus, selling isn’t as easy as not renewing the lease on your apartment.
Next, check your credit score. A good one — 700 or above — usually means you can get a lower interest rate on your mortgage loan. And that means a smaller monthly payment. Keep in mind, though, that you’ll be paying utility bills, insurances and, in some cases, association (HOA) fees. Figuring out how much you can afford now will help prevent financial stress down the road.
And you’ll have to plan for a down payment. Most mortgage lenders require 3% to 5% of the price up front. However, you don’t want to completely deplete your savings, because it’s important to maintain an emergency fund. Steady income and smart spending are essential when you make the decision to become a homeowner.
2. Prioritize What You Want & Need
Come up with a list of features you want in your future residence. This may include size, design, location and area crime rates. This will help narrow your search. Differentiate between needs and wants. There’s no such thing as the perfect house, so you also need to decide what’s flexible and what are deal-breakers.
3. Find a Real Estate Agent
It’s crucial to work with a Realtor you trust. Choose someone with experience in the neighborhoods you’re considering, then talk to friends and family about their past buying and selling situations. Interview several real estate agents to find someone with whom you are comfortable.
4. Get Pre-Qualified
It’s important to seek loan pre-qualification to know what you can afford. This also makes the mortgage application go faster when you find the property you want. America First can help you through this process and determine which loan best meets your needs and financial goals.
5. Make an Offer
Once you find the house you love, it’s time to make an offer. Your Realtor can help you in coming up with something reasonable and communicate it to the seller. It’s acceptable to offer slightly less than the asking price, but some sellers are willing to negotiate and others are not.
6. Inspections are Key
Never buy a home until you have it inspected. There could be serious flaws, such as mold, structural damage, wiring issues or plumbing problems that could end up costing you in the long run. Hire a professional inspector and make sure to read the report thoroughly. Resolve anything major before you close.
Following these guidelines should provide first-time homebuyers with some stress relief. You can also check realestate.americafirst.com and search for local homes by location, price and type, as well as bathrooms and bedrooms.
Happy house hunting!