Getting your first house is a significant deal, and having the correct help will make it a lot easier.
This process may be fresh new to you, but it's not new to your agent. They've helped a lot of people buy their first home. They know what works, what really matters, and how to go through the process with a lot less guesswork.
Based on my experience aiding other first-time buyers, here are some recommendations that work in the real world.
Tip #1: Get Pre-Approved First
Rocket Mortgage states that this is one of the most typical blunders that first-time buyers make. And it's not hard to see why. It's fun to look at houses online. But doing it before you know your numbers? That's a bad idea. You don't want to get attached to a house that's too expensive for you. That's a quick way to get angry.
Instead, get in touch with your agent and a lender before you start looking at houses. Your lender can help you get pre-approved for your home loan. That will help you understand how much you can borrow. Also, it helps you make a budget that you can stick to. Then, your agent can design you a list of properties that are just right for you, so you only see homes that you can afford. More understanding, less anger.
Tip #2: Make a budget and stick to it.
Keep in mind that even if you can borrow up to a particular amount, you probably won't want to borrow the most. In today's economy, it's very crucial to stay inside your budget. You should also think about other costs of owning a home, like taxes, homeowners association (HOA) fees, and home insurance, which are all going up. Bankrate says this:
"When you're making a budget to help you find a home, don't just think about how much you can afford to buy. Also think about how much you can afford to pay in monthly bills after you buy the home."
So, ask the experts for help with costs you might not have thought about so you can include them in your budget.
Don't skip the inspection, tip number three
It's easy to get caught up in the enthusiasm when you locate the right house. But not having the examination merely to make your offer look better is a risky move that could cost you.
Instead, talk to your agent about setting up a real inspection. They'll put you in touch with local experts, make sure the appointment is made, and help you comprehend the results so you can negotiate repairs or ask for money off at closing if you need to. It's better to spend this time now to avoid having to pay for thousands of dollars in unanticipated repairs later.
Tip #4: Your first home doesn't have to be your last home.
This is where a lot of consumers start to feel undue stress. But keep in mind that you don't have to have your ideal home straight away. That's why many call it a starter home. It's not your final destination; it's just the beginning.
An agent will help you look at all of your choices, including ones you might not have thought of. A well-kept condo, a townhouse in a terrific location, or a house with good bones are all great first homes. What is the goal? Come in. Start to build up your equity. After that, go bigger.
The Bottom Line
Getting your first home is a significant deal, but it doesn't have to feel like you're going in the dark. Tell your agent where you are now, what is worrying you out (or keeping you from moving forward), and what you really need to know.
And the best thing you can do in this process is hire a great realtor, like the ones at the Hersey Group.
