Four Essential Tips for First-Time Home Buyers
Buying a home for the first time is one of the most exciting events in someone’s life. It’s a time of identifying your needs, choosing the right neighborhood, attending open houses and dreaming about your future. It’s a huge milestone, and it’s easy to get caught up in all the excitement, but there are a few things to keep in mind in order to make the process as seamless and enjoyable it can be for you.
Keep Your Budget in Mind
First, consider getting prequalified for a loan, especially if you aren’t sure where your budget starting point is. Knowing how much you can actually borrow will help guide you and your realtor in your home search.
Additionally, buying a home has a plethora of hidden costs apart from the actual mortgage that you should be aware of in order to budget effectively. Consider your down payment – 20 percent is customary, although many lenders do permit much less. However, the less you put down, the more your monthly mortgage will be.
You must also consider closing costs. These costs are generally shared by the buyer and the seller, but the buyer takes most of it on – usually between 2 and 5 percent of the loan amount. The closings costs, therefore, would be between $3,000 and $7,500 on a $150,000 home. These are usually required to complete the home buying process and can include homeowners insurance, a fee for a home appraisal or a fee for the home inspection, etc.
Outline Your Needs
As with buying any home – not just your first one – you should make a detailed list of the things you need out of a home. Considerations include:
- Type of home (townhome, single family home, split-level, bungalow, etc.)
- Location (do you need to be close to work or do you not mind a commute?)
- Fixer-upper or a move-in ready house
- And more!
Don’t Get Discouraged
The process of buying your first home is very exciting, but it can certainly have its ups and downs. Maybe you didn’t prequalify for as much as you wanted, or maybe you found the seemingly perfect home but someone else beat you to it. Don’t fret, though, and be sure to keep a positive attitude. Take it day by day, and let your realtor help you as much as possible. Patience and flexibility are key.
Enlist a Trusted Real Estate Team
Having a competent and caring team is especially important during the purchase of your first home. You’ll need someone who will listen, be respectful and also be very knowledgeable so they can guide you to your perfect abode. The Sargent McDonald team with Brik Realty is ready and waiting to be your trusted real estate team. We have a passion for helping people just like you and understand how exciting the purchase of your first home can be. We would love to share that with you. Click here to contact us today!