The first time buyer arguably faces more challenges in the house buying process than any other type of home purchaser. This is largely due to inexperience and the difficulties of predicting the unpredictable in advance.
On the basis that forewarned is forearmed, here's a simple guide of what to watch out for on your home buying debut.
1. Make sure you completely understand your finances so you absolutely understand what you can afford, leaving a suitable buffer for unplanned costs.
2. Don't forget that the home buying process also has a number of costs associated with it, including appraisal, credit report, escrow and notary fees.
3. Home ownership also creates a number of new costs, including your monthly mortgage payment, ongoing maintenance of the home, homeowners insurance, property taxes etc.
4. Check your credit score before embarking on home purchase. This will help you to establish your mortgage loan options.
5. Study the housing market in the area you wish to live. It is important to understand if you have the financial means to live there and what the advantages and disadvantages of living in the area are, related to your own lifestyle and requirements.
6. Seek pre-approval for your home loan. This greatly improves your buying power and means that sellers will take your offer more seriously. Indeed, some sellers may not accept an offer unless you have pre-approval.
7. It's so easy to be convinced that the first home you view is the perfect one for you. If you have followed all the above steps, then the chances of making a costly error will be greatly reduced, but don't set your heart on a home if it is not realistically priced. The smart home buyer will always balance location and features with a competitive asking price.
8. Contact Us today. You need a realtor on your side who is used to guiding first time buyers through the maze of home buying.
We can help to make all the above steps a lot easier for you.