Seven Tips For The First Time Home Buyer
Buying your first home can be a dream come true, but this monumental task should not be taken lightly. The home that you choose to live in may be your residence for the next few years or even decades. More than that, it will impact your finances for years to come. With this in mind, there are a few helpful tips that can guide you through this process.
Prepare a Budget
First, you should prepare a budget with your current income and expenses as well as a second working budget. Each home that you review will impact your mortgage payment, utilities expenses, HOA dues, property insurance and more. You can revise the second budget based on each home that you are seriously considering. This will help you to make a decision that is affordable for you.
Use a Mortgage Calculator
You can also use a mortgage calculator to estimate which mortgage payment may be most affordable for you. This can also be used to determine how much money you need to save for the down payment and sales price that you can afford. A mortgage calculator is a very helpful tool throughout the buying process.
Get Pre-Qualified for Financing
Before you seriously begin looking for a first home to purchase, meet with a mortgage professional to get pre-qualified for financing. A mortgage calculator is a great tool, but it only provides you with estimates. Getting pre-qualified will let you know for certain how much money you need to save and what size of sales price you can afford.
Save Your Money
Then, review your assets to ensure that you have enough money saved. Be sure to take into account closing costs and other expenses related to the purchase, if any. If necessary, save additional money now before you go under contract on a new home purchase.
List Your Desired Home Characteristics
When you have taken these preliminary steps, you can start looking for a home to purchase. Begin this process by listing the desired home characteristics you want. Think about square footage, the placement of the master bedroom, the number of bedrooms and bathrooms and other factors.
Work With a Real Estate Consultant
Working with a professional real estate consultant is a smart idea. They can help you find exactly what you are looking for in a home, say the experts at Reinvest Consultants. This professional also can walk you through the entire process of buying a home, including negotiations with the seller, ordering third party reports and more.
Check Out the Neighborhood
Once you believe you have found a desirable home, check out the neighborhood. The ideal home is in a neighborhood that you find appealing. The neighbors may not be loud or obnoxious, and there may be various amenities that you and your family might use.
There are many points to consider before you buy your first home. By following these tips, you can make a better buying decision.