Buying a home is always quite the experience, no transaction is the same. That is why we wanted to share our top 5 tips for first time home buyers.
1. Decide what type of home is right for you
There are many different types of homes to consider when making this decision. Some buyers may want to rent their property while they live there, build a custom home, buy a new home, buy a historical home, etc. These are just a few examples of homes to consider when making your first purchase. It is important you consider how your home will work within your lifestyle when making this decision.
2. Think about the features of your future home
Once you’ve decided what type of home you would like to purchase, start considering home features. Features can include things like the neighborhood, roof material, cabinet style, appliances, style of home, etc. It is important you categorize features based on what you want and what you need. Buying in the neighborhood/school district you need is much more important than the cabinet color you want. Do not make the mistake of looking over the perfect home because it lacks something you want.
3. Find an experienced REALTOR
Finding an experienced REALTOR is key to a smooth transaction. When buying a home (especially your first) it is important to work with someone who knows the area and is familiar with the home buying process. They will also be helpful when it comes time to select your lender and inspector.
4. Talk to your Lender
After you’ve found the lender you would like to work with, they will begin requesting information. This could include things like your credit history, debt, cash on hand, monthly income, how long you have worked at your current job, etc. Once your lender has gathered all the information they need, they will let you know how much mortgage you qualify for. This will help indicate a target budget.
5. Budget within your means
Once you have heard the top end budget from your lender, it’s important to step back and consider what you’re comfortable paying. You may be pre-approved for $400,000 but you may or may not be comfortable paying a $3,000 monthly mortgage. Factor in your monthly income with your monthly spending, then add in your future mortgage payment. If it looks like it won’t be a strain go for it, but if it looks like things may be a little tight consider cutting down on your monthly spending or your new home budget.
Once you have decided on the type of home you’re looking for, the key features, an experienced agent, a lender and a budget. It’s time to start hunting for your dream home with ease thanks to these 5 tips!