Buying a home for the first time can make for some of the most exciting times – as well as the most stressful times. To ensure you’re set up for a smooth home-buying experience, here are a few important tips that will guide you to the exciting destination of being a first-time homeowner.
Give It Time
The process of buying a home takes an average of 6 months, from start to finish. For this reason, it is important to mentally prepare for the twist and turns in your journey. But with the right guidance, you’ll come to the end of your story having made decisions about your first home purchase that you can be proud of.
Get Your Finances in Order
Credit scores can impact your ability to receive a loan approval, determine how high or low your interest rates will be and affect other loan terms. Each individual is permitted one free credit score check each year. Take advantage of the information given and pursue measures that could improve your credit score before starting your journey as a first-time homeowner. Additionally, check for any errors on your report, as these are not uncommon.
How Do You Want to Buy?
Once you’ve determined your credit score, the next step is determining how you are going to purchase your first home. Find a Home Affordability Calculator online and find out how much you can afford to spend on your home. Are you planning to take out a loan, or have you saved up cash for your purchase? If you are taking out a loan, how much is saved for the down payment, mortgage insurance, and additional fees that come with buying a home? If you’ve decided to take out a mortgage loan for your purchase know that each lender has different stipulations around interest rates, loan approval, and ultimately – what will be the best fit for you. Getting pre-approved for a mortgage loan is the first step as you get prepared to buy.
Decide on Non-Negotiables
Set aside time to sit down on your own or with your partner to decide what you are willing to budge on when it comes to your home. Is there a specific neighborhood you would like to live in? Are there features that you just can’t live without? Sometimes it takes time to know what you want as a first-time homeowner. Taking time to think through your desires helps avoid turmoil later on when decisions need to be made.
Find a Realtor
Now that you’ve solidified your desires and your financial bracket, it’s time to find a realtor to lead you through the process. Realtors are essentially guides that help you with price negotiation, finding listings and understanding paperwork, and they usually have a strong local familiarity. Their job is to make it easy for you to find the home of your dreams. Get to know at least 3 different realtors and then decide who the best fit is for you.
Search & Ask a Lot of Questions
As you begin your search, here are a few important criteria to consider. When viewing homes, ask about the structure and features of the home, test the water pressure, and look for any electrical issues. Notice heat retention around doors and windows, observe roof and exterior quality, and listen to the neighborhood noise levels. Consider talking to neighbors about local spots that they recommend such as parks, restaurants, and grocery stores. This will help you get a great overview of the home and area before making an offer.
Making an Offer
During this part of the process, ask your realtor for details on seller disclosures and learn what comes with the house. This will help you make an offer confidently. And if you have not scheduled a home inspection yet, it’s time to do so. Make sure to get all inspections done that are needed in your specific location. As you finalize the last walkthrough before purchase, you’ll want to confirm that title searches and insurance are both taken care of.
You can walk into your first home-buying experience as an informed and confident buyer. Don’t hesitate to ask questions and always stay curious throughout the process. An experienced realtor or helpful blog are always just a call or click away.
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