10 Tips for First Time Homebuyers

Buying a home for the first time can be exciting. But there are a lot of new processes you’ll experience and people you’ll need to work with, too. Here are 10 of the top first-time homebuyer tips to help guide you through your journey from start to finish.

1. Identify your needs. You may have always dreamed of a two-story house with a grand staircase and a large yard, but have you considered what you truly need in a home? Where you are in life right now and where you’re planning to go in the future may not be the same as where you thought you would be when you first dreamt of buying a home.
2. Know the true cost of your new home. Make sure you know what your new home will really cost. Your true housing cost includes more than your mortgage payment. A good first start is to use a mortgage calculator to estimate your monthly payment. Most lenders also offer help with this if you want more solid numbers.
3. Build your savings now. Don’t wait until you’ve found the house you want to buy — start saving now. Then, look for areas in your current spending where you can cut costs. For example, packing lunch to bring to work can cut down the amount of money you spend on food every month.
4. Build your credit wisely. When you’re preparing to buy a home, you need to be smart with your credit. Lenders use your credit score as a key factor to determine whether to approve you. They also use it to determine the interest rate and loan terms they’ll approve you for.
5. Research your mortgage loan options. While many people think a conventional loan is their only option for buying a house, you have several different mortgage loan options available to you. These include FHA and VA loans. Most lenders also offer the option of choosing between a Fixed Rate or an Adjustable Rate (ARM) Loan. Each mortgage loan option has its pros and cons. Consider working with a home lending advisor to find the home lending option that best fits your unique circumstances.
6. Know what you qualify for before you begin shopping. Did you know you can find out what you can qualify for before you even begin looking for a house? You can get preapproved for a home loan with a simple conversation with your mortgage lender about your income, credit, employment and asset information. Getting preapproved for a mortgage loan can help narrow your search because you’ll already know how much you can finance.
7. You don’t have to do this alone. Hiring a real estate agent, like one of our brokers at YOUr Realty Group, means you don’t have to go through the homebuying process alone. As a valuable partner, we’ll work with you to ensure your needs and best interests are met throughout the purchasing process. Choosing an experienced agent who will represent you as YOUr Buyer’s agent helps ensure someone is working with your best interest in mind when finding homes and negotiating purchasing terms.
8. Make the decision in your own time. You might feel like you need to quickly put in an offer on a home, or to accept rates or terms without knowing what other lenders might offer. It’s okay to take your time to understand how everything works. Know what your options are and carefully think things through before you make any decisions.
9. You don’t have to pay the seller’s asking price. You don’t have to make an offer for the full asking price on the home you want to buy. As a first-time homebuyer, rely on your real estate agent’s advice to determine how much you should offer. Ask your agent to help you make an offer that’s competitive but also within your budget and reflective of the home’s value.
10. Prepare for closing. Once the seller accepts your offer, there’s still a lot to be done before you close, like getting a home appraisal, completing a home inspection, doing a final walk-through and completing paperwork related to your loan.

There’s a lot to keep in mind when buying a home, but it’s all worth it in the end. Knowing what the process involves, and how to handle whatever comes up, is a great way to arm yourself for this exciting journey.

If you find you need more space to keep organized, meaning a new home may be in your future please give me a call at 971-341 4491. Real Estate with Lita. How can I help? For more information, contact Lita at 971-341-4491 Visit www.yourrealtygroup.com.