It’s really exciting to start the process of looking for a new home as a first-time home buyer. However, this is one big decision and the process isn’t one you want to go into blindly.
There are several things you want to be aware of as you are a first time home buyer, so check out these tips:
1. Get your finances in order as soon as possible
If your financial health isn’t healthy enough right now, this is your first step when thinking about becoming a first-time home buyer in Washington or wherever you’d like to live. From your credit score to the amount that you have in your savings account, it’s important to think about your financial health before buying a home.
If it’s not where it should be for you to get approved for a loan and to put down a large down payment, start making plans to budget for your future home today.
2. Take time to look for a loan that’s right for you
Before you commit to just any loan that comes your way, be sure that you’re not missing out on a loan that could be perfect for your current situation, whether that’s a VA loan or a loan for single mothers. You could save thousands when making sure you get the best rate for your situation, so don’t jump on just any mortgage option that comes across your desk.
3. Don’t forget to plan for extra fees
Keep in mind that there are many fees associated with the home buying process, so as you get started saving for the down payment for your future home, make sure that you’re also setting aside money for the fees you’ll be charged. These fees include everything from the closing costs to the appraisal fee, credit report fees, HOA fees, origination fees, and so much more.
Keep in mind that you also have to account for property taxes when you purchase a home. So if you plan on purchasing a home near Los Angeles, for instance, make sure you can afford California property taxes. Budget these taxes and fees into your expenses for buying a home.
4. Work with a reliable realtor
To make sure you get the type of house you have in mind, with the specs and features you would like at a price that you can afford, the best thing you can do is find a reliable realtor who not only knows the area like the back of their hand but also comes highly recommended by people you trust.
The right realtor can help you find the perfect home for your needs and often in an “impossible” market. Ask friends for recommendations or look on great real estate websites for the right option for your home buying needs.
5. Buy a home you can afford
A big mistake made by people looking to buy their first home is shooting too high with what they want to buy. This could look like buying a home that is much larger than what is needed or buying in the trendiest area of town.
While it’s nice to have fancy things, the reality is that committing to a home that is more than you can comfortably afford is a recipe for years of stress and not having enough for other things in life.
If you think about it, is it really worth it to live in the most expensive neighborhood in your city?
After 20 or more years of feeling stuck to your mortgage payments, it may not be. Even if you have to buy a home to fix up, it may be a better decision for your pocketbook.
As a first-time homebuyer, there’s a lot that you don’t know just yet. It’s exciting to buy a home but it’s one of the biggest financial decisions that you’ll ever make in your life. Whether you’re moving to Texas or Oregon, it’s important to know what the home buying process entails and be ready. If you want to be sure you’ll be able to enjoy the new home, follow the above-mentioned tips before you bite the home-buying bullet.