Purchasing your first home is a big deal! In fact, buying a home is often the largest financial transaction most individuals will make in their life. To help set you up for success and make your dreams a reality, follow these helpful tips:
Start Saving Early
The more you can save for a down payment, the more options you will have. Thankfully for first-time homebuyers there are resources available to help offset some of the expenses associated with homeownership such as government and state programs, tax breaks, and home loans for first time home buyers.
Get Pre-Approved Sooner than Later
By working with a mortgage lender, you will gain a better understanding of what you can afford to purchase, your estimated monthly mortgage payments, and the various lending programs available. You may be able to put down less than 20%, but don’t forget to stick to your budget!
Be Aware of All Costs
There is more to buying a home than its price tag. Consider the following additional expenses:
- Home and termite inspection – once your offer has been accepted by the seller, you will want to make sure to have a home and termite inspection completed
- Closing costs – expenses required to purchase a home such as title insurance, association transfers, notary and recording fees, and mortgage fees
- Moving expenses – can include packing, movers, or storage costs if needed
- New home furnishing and repairs – when you move-in to your new home, you may want to buy new furniture and even make small repairs or upgrades to truly make it feel like home
Stay Focused Yet Flexible
By defining your need and wants, you can save time on your home search.
What are your must-haves in your home and what features are you flexible with? Knowing what is most important to you will help you search for homes while exploring properties that offer features outside of your main criteria
Think Long Term
Many first-time homebuyers get hung up on finding their dream home. Remember, buying your first home is an important step in moving up the housing ladder. As your home appreciates, your savings increases and your life’s needs evolve, you will be in a better position to make those dreams a reality.
Get Your Home Inspected
This is a critical step. A home inspector will tell you about any potential problems associated with a home. A weak foundation, leaky roof, or bad plumbing can all add up quickly but may not be obvious from the surface. Completing a home inspection, will give you peace of mind and save you money.