You’ve decided to buy your first house and you’re probably very excited about it. Without the right guidance, buying a house can be a long and stressful process that requires a lot of money and decisions. Here are some tips you’ll want to look over as you dive into the home buying process.
Know What you can Afford: Make sure you look at ALL of the expenses when you’re budgeting for a house. Calculate what your monthly payment will be with all the additional costs that come with a new home such as property taxes, interest, insurance premiums, homeowner’s insurance, and so on. Also consider cost of commuting, utilities, and upgrades. Factor these into your currently monthly budget to see how your mortgage payment will fit into it.
Get Pre-Approved: What this means is that a mortgage lender has checked your credit and verified your income and assets. This will help you to further determine what you can afford and how much you’re eligible to work with. This will also give you an edge with sellers who are looking for a quick and smooth deal.
Learn About the Neighborhood: Remember, you’re not just moving into a house, but into a community, so it’s important that you know what kind of place you’re moving to. Visit at different times of day to get a sense of the noise and traffic level. Determine the distance from various stores and the type of neighbors you’ll have. If the amenities and the demographic don’t fit your lifestyle then you might not be comfortable here no matter how perfect the house might be.
Work with a Local Agent: Once you find a neighborhood that works for you, look for an agent who has worked there for a while and has knowledge of all the different aspects of the community. Be sure to ask them any questions you have about the area that may be important to the contract process.
Identify your Potential Down Payment: Depending on your comfort level, there are many programs available with varying down payment. We have home financing program that offer zero and low-down payment options as well as the standard 20% down payment options. Your Loan Originator can help you review your situation and find the best solution to fit your needs.
Have the House Inspected: No matter how perfect a home may appear to be, it’s a safe idea to have a trained professional inspect the overall condition of the property. This could help you avoid a lot of unexpected future repairs that might have cost you a fortune. If the inspection unveils serious issues that the seller did not disclose, you should be able to withdraw your offer and get your deposit back, or you can negotiate to have the seller pay for the repairs.
Keep Saving: Just because you bought your home doesn’t mean you should stop putting money aside. It’s always a good idea to have an emergency fund ready for any sudden home repairs or other emergencies that might occur.