5 Tips for First Time Home Buyers
Guest Blogger: Talia Spero
Congratulations! After months – maybe even years - of preparation and excitement, you are finally purchasing your first home. But, it is important to not let the anticipation of being a first time home buyer to get in the way of making crucial decisions in the buying process. By checking these to-dos off your checklist, the task of purchasing your first home will be less daunting and all the more exciting.
1. Determine Your Budget
The very first thing a new homeowner should do is determine what they can or cannot afford. This will make your house-hunting significantly more effective. When calculating your personal budget, including all additional costs, such as homeowner’s insurance, property taxes, etc. Once you have determined your budget, you will know which homes are within your reach.
2. Consider Cost-Saving Moves
A first time home buyer is most likely looking to get as much bang for their buck. There are several potentially cost-saving moves you may be interested in; such as properties in foreclosure, or shop in neighborhoods with a high number of properties for sale to get the highest value for your dollar.
3. Determine where you Stand with Vendors
To make the buying process much easier, know where you stand with lenders. Being aware of how low or high your credit score is can allow you to shop around for the appropriate loan. Either way, there are still promising options available, but having a low credit score may increase your budget.
4. Determine your Requirements
For most first time home buyers, an idea of what you are looking for is already planted in your mind. But, be sure to separate your needs from your wants. This will narrow down your search for a quicker home buying process.
5. Consider your potential down payment
Hopefully, you have some funds set aside to make a down payment for your dream home. It is recommended to have at least 20% of the purchase price available, but be sure to look into many loan and mortgage companies that can help you make a down payment for significantly less.
Although there are many other tips to consider when buying your first home, these first five should be extremely helpful to you and your search. Go find your dream home!