5 Tips for Buying Your First Home
1. Start saving
It is important to start saving early when you plan on buying a house in the near future. It might not be for a couple of years, but it is smart to have some money saved for the down payment, closing costs, moving expenses, etc. There can be a lot of unexpected costs when buying a home. Save any work bonuses, tax refunds and set up an automatic savings account. Have an emergency fund set aside, as things can happen unexpectedly, and you want to be prepared.
2. Consider your debt
Taking into consideration your existing debt is very important when making any kind of large purchase, but especially a home. Knowing what you can afford is very important, you must take into consideration what you are already paying on existing bills; as well as, what other bills will come with buying a house. It is advised to payoff as much of your existing debt as possible, to make it easier on you when you have a house payment, insurance and utilities. Create a budget for after you bought your house and be mindful of what you can spend when furnishing your new home.
3. Explore your mortgage options
There are many different mortgage options to look at when thinking of buying a home. FHA, Conventional mortgages and VA (for veterans) just to name a few. Fees vary depending on the lender that you are working with.
4. Get pre-approved for a mortgage before you start shopping
Once you are sure that you are prepared to buy a home, it is smart to get pre-approved so you know the budget you can afford when looking for homes. Once you have a set amount you can tell your realtor and they can look at homes within your price range. Being pre-approved lets the sellers know that you are serious about purchasing a home.
5. Take your time and don’t settle
The home buying process can take some time, and most likely you will not find the perfect house right off the bat. Make sure you find an agent that is willing to dedicate their time to you and helping to find the right home. In the end, they want you to be happy with your decision.
Do not stop looking until you find the perfect house, and don’t settle for anything less. It may take some time to find the house that has everything you want. Look around the neighborhood make sure that you will like the area, if you have kids, look into the school systems. Make a short list of things that are non-negotiable. If a house does not have all the things you want, don’t buy it. This may not be your forever home, but you want to be happy with it for the time being. When searching for the right home, think about where you will be in three to five years; ask yourself, will this home accommodate my lifestyle?
Ready to get started? Just want to ask questions? That’s what our mortgage lenders are here for. Get your home-buying journey started by visiting waynebankonline.com/homebuying.