Congratulations on taking the big step of becoming a first time home buyer! While it can be an exciting process, it can also be overwhelming. To help you avoid some common mistakes it is important to think about 5 main things. To start , consider your budget, next shop around for the right lender and remember to take your time. Additionally, you should think over condition of the home in terms of safety as well as your projected length of ownership.
Consider Your Budget
When you purchase a home you need to consider your overall budget for the cost of the home BUT also for any additional fees/costs associated with the property. Don’t forget to consider all of the additional costs associated with buying a home, such as closing costs, taxes, and insurance. Additionally, if you plan to update your property it would be wise to consider those costs when budgeting.
Shop Lenders
It pays to compare different lenders to make sure you’re getting the best deal. Many banks and credit unions offer home loans as well so do not forget to talk to them. When shopping around you want to not only get the best rate but make sure you lender is someone you feel good communicating with on a daily basis. Many lenders offer similar products but who you vibe is also very important.
Take Your Time
Purchasing a home is a HUGE deal, regardless of the price. So, slow down and take your time. Ensure you do not feel rushed, take your time to research the area, explore different neighborhoods and look into the cost of living. Work with your agent on timing and getting educated. It pays to slow down!
Inspection and Safety
It’s important to have a professional inspect the house to make sure there are no major issues. It helps to ensure that you are getting a home that is safe and structurally sound. An inspection can reveal potential problems that may be costly to repair down the line, such as foundation issues, electrical problems, or plumbing leaks. It also helps to give you peace of mind when making such a large investment.
Homeownership Length
Consider factors such as your financial situation, employment opportunities, family size, and lifestyle when determining how long to own a home. It’s important to ensure that the length of ownership fits your needs and that you can comfortably afford the mortgage payments. If you plan stay for more than 5 years it might be easier to update over time and see substantial equity. If this a short term purchase a move in ready can make more sense. Additionally, it is important to keep in mind that real estate is a long-term investment, so it is generally recommended to hold onto a home for at least a few years before selling.