9 Important Tips for First-Time Home Buyers
Buying
your first home is exciting, but can also be an overwhelming
experience. Here are my top 9 important tips for first-time home buyers to help prepare you for your purchase.
1. Look after the rationale side first. Looking at homes online and going to open houses is the fun part of buying a home. But often our expectations can exceed our budget. To avoid disappointment down the line, do the math before you start looking.
2. Clean up your credit rating well in advance. Lenders look at your credit rating and sometimes last minute credit clean ups will do more harm than good. So clean up your credit history well in advance of actually applying for a mortgage.
3. Find out how much you can spend by getting pre-approved. Keep in mind that closing costs can run as much as 2-4% of the sale price.
4. Think about the carrying costs. Monthly costs include property tax and utilities. Don’t forget about property upkeep and budgeting for repairs.
5. Anticipate compromise. Chances are no house will be perfect. Keep in mind that this is your first home. Not your last. Look for something that meets your needs but be realistic about your wants.
6. Compromise with your partner. She wants move-in-ready. He wants a fixer upper. Talk things through before you start looking at properties and figure out where the give and take will be.
7. Keep in mind that the prevailing market dictates how much a property is worth, not you the buyers. While a house may appear to need a lot of work, that doesn’t mean the price is too high. The price has been set based on the sale of comparable properties nearby.
8. Partner with a realtor early in your search. A realtor will be able to guide you through the process and answer your questions. Take the time and meet with different realtors to find the one you feel comfortable working with.
9. Lastly, have fun! When the time comes, don’t be reluctant to make an offer on the property that meets your needs. Everyone is nervous about their first home purchase but the rewards of home ownership are worth it.
Hope these 9 important tips for first-time home buyers have been helpful.
1. Look after the rationale side first. Looking at homes online and going to open houses is the fun part of buying a home. But often our expectations can exceed our budget. To avoid disappointment down the line, do the math before you start looking.
2. Clean up your credit rating well in advance. Lenders look at your credit rating and sometimes last minute credit clean ups will do more harm than good. So clean up your credit history well in advance of actually applying for a mortgage.
3. Find out how much you can spend by getting pre-approved. Keep in mind that closing costs can run as much as 2-4% of the sale price.
4. Think about the carrying costs. Monthly costs include property tax and utilities. Don’t forget about property upkeep and budgeting for repairs.
5. Anticipate compromise. Chances are no house will be perfect. Keep in mind that this is your first home. Not your last. Look for something that meets your needs but be realistic about your wants.
6. Compromise with your partner. She wants move-in-ready. He wants a fixer upper. Talk things through before you start looking at properties and figure out where the give and take will be.
7. Keep in mind that the prevailing market dictates how much a property is worth, not you the buyers. While a house may appear to need a lot of work, that doesn’t mean the price is too high. The price has been set based on the sale of comparable properties nearby.
8. Partner with a realtor early in your search. A realtor will be able to guide you through the process and answer your questions. Take the time and meet with different realtors to find the one you feel comfortable working with.
9. Lastly, have fun! When the time comes, don’t be reluctant to make an offer on the property that meets your needs. Everyone is nervous about their first home purchase but the rewards of home ownership are worth it.
Hope these 9 important tips for first-time home buyers have been helpful.
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