Being a first time home buyer can be both extremely exciting but also very nerve wracking. With so little experience it can be easy to make mistakes that are otherwise easy to avoid. Finding the right agent for you, getting together with lenders and actually making an offer in a timely manner are all key points in the home buying process. However, here are a few additional tips for first time home buyers to think about during the process.
Pre-Approval First and Foremost
One thing that is extremely important when buying a home is being able to act quickly when you find the right place for you, and a major step in that process is having pre-approval on a mortgage. Gaining pre-approval is as simple as getting your debt cleared and getting your money together followed by speaking with multiple quality lenders with transparent rates. It’s important to get quotes from multiple lenders to make sure that you are getting the best deal possible, with most people suggesting you receive at least three quotes. Interest rates are not the only thing to take into account, responsiveness and customer service from your lender are also important factors that are often overlooked.
Get Your Finances in Order
With the current state of the real estate market, affordable houses are moving quickly meaning first time buyers should be ready to buy. To best prepare yourself, buyers should have enough saved for a down payment as well as a backup emergency fund just in case. Avoid spending large amounts on credit cards during the pre-buying process since the cost of the home is only the beginning and you will need to spend money furnishing the home and fixing any issues that may come up post occupancy.
Having a large amount of debt can be stressful to your mental health but may also cause financial strain. If possible, it is recommended to pay off as much of your credit card debt as possible before seeking out a mortgage from any lender. Having a smaller amount of debt will also allow you to receive more favorable rates from those same lenders.. Long story short, if you are a first time home buyer, make sure you are in a financially secure place before making that home purchase.
Find the Right Neighborhood for You
Buying your first home is a major financial investment so you want to make sure you are choosing the correct neighborhood for you. Some people are looking for a first house that may only be a short term home, others are looking for the perfect home for them and their family to grow into. Both types of buyers should be doing extensive research to make sure the neighborhood is right for whatever their needs are. What are the schools in the neighborhood like? Do other young and growing families live nearby? Is the downtown area lively or not that exciting? These are all essential questions that should be looked into before deciding to spend a large amount of money on a property. One other thing to keep in mind is resale value, will the property be worth more than what you bought it for when you do eventually decide it’s time to move, whenever that may be
In summation, before you shop as a first-time buyer, you should make sure you are ready to buy when given the chance, meaning you should get your debt resolved and have money for a down payment. Meet with multiple lenders before making a decision, and of course be sure to do some research on various neighborhoods before settling on your first home.