Are you a first-time homebuyer? If so, you’re probably experiencing both excitement and a bit of stress.
Don’t worry, that’s a perfectly normal reaction to making such a major investment. After all, buying a house is a tremendous responsibility that can feel overwhelming. Fortunately, you’ve come to the right place for help.
This article takes a look at first time homeowner tips that will make the process a little less stressful and a lot more fun. Keep reading to get the inside scoop on how to know you’re making the right decision as you move forward with one of the most exciting milestones in life.
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Create a Budget
The first step in buying a home is to know what you can afford to spend. Many first-time buyers tend to bite off more than they can chew and find themselves deeply in debt.
The key is to take a serious look at your finances. Assess your income and your expenses. Be realistic about how much home you can afford, create a strict budget, and then stick to your plan.
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Start Saving Yesterday
When it comes to buying a home, it’s never too early to start saving. Keep in mind that you’re going to need a sizable chunk of cash for your down payment. That’s why you need to start setting aside money immediately.
Be prepared to put down 10% to 20%. Thus the higher the price of the house you purchase, the bigger the amount of your down payment. Don’t fall into the trap of waiting and until you’re shopping for a house to begin saving.
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Reduce Debt
It’s no secret that debt is a killer when it comes to finances. After all, debt forces you to pay interest on money you’ve already spent. This is especially true for things such as credit card debt, car loan debt, and student debt.
Debt on old loans often hangs over people for decades. Not only will this cost you thousands of dollars in interest and fees, but it can also keep you from qualifying for a home loan.
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Get Preapproved for a Loan
Once you’ve assessed your finances, developed a budget, and feel comfortable with your debt load, one of the best ways to speed up the homebuying process is to get preapproved for a mortgage.
You’ll want to talk to a few lending institutions to find the best rate and then submit an application.
Getting preapproved enables you to shop for homes without the stress of worrying about whether or not you can make an offer. This will increase your confidence as a buyer and will give your realtor more power and freedom when looking for a home that is the best match for your needs.
You should also check out a homeowner grant from Hunter Galloway.
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Stay Within Your Price Range
Shopping for your first home can be an incredibly exciting experience. In fact, it’s very easy to let your emotions get the best of you. After all, the market is filled with amazing homes that you would love to call your own.
But you need to remain realistic about what you can afford. That’s why you’d be wise to only look at homes that fall within your price range. This is smart advice for first time homeowners.
Sticking to your price range will be far less stressful because you won’t have to walk away from a house you love due to price, and you’ll also have far more purchasing power because you can make the decision to buy at any moment.
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Think About Your Wants and Needs
Before you get to0 deep into the process of looking for a home, sit down and make a list of your wants and needs.
For example, do you have kids? Are you newlyweds planning to start a family? If so, you’ll want to look for a house big enough to allow your family to grow.
You’ll also need to think about schools in the area and the driving distance to work. Is the neighborhood kid-friendly? Are there plenty of entertainment options nearby? All of these things matter because they can have a significant impact on your overall quality of life.
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Hire an Experienced Realtor
It’s impossible to overstate the value of hiring an experienced real estate agent. Especially if you’re moving to a new area.
A good realtor will have a firm grasp of the current housing market in the neighborhood where you’re planning to relocate. They will know what’s available, they’ll have strong professional networks they can leverage to your advantage, and they will be able to help negotiate the best price possible.
Hiring the right real estate agent will also save you lots of time and tons of headaches.
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Hire a Home Inspector
Once you’ve located a house that you’re interested in making an offer on, consider hiring a home inspector. This is a professional who can locate problems that need to be fixed and that can seriously impact the value of the house.
It might cost you a few dollars but it’s definitely money well-spent.
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Be Prepared for Closing Costs
Many first time buyers are prepared for the closing process. Thus they are often caught off guard by steep closing costs. This is a basic part of the process, so you’d better save plenty of money so that this doesn’t present a problem when you’re ready to sign the paperwork.
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Purchase Homeowner’s Insurance
You’re going to need to purchase a homeowner’s insurance policy. In fact, you’ll need to have insurance before you can close on your loan.
Should around and get the best rate possible, and make sure that you fully understand everything covered under the policy, including the amount of your deductible. This is extremely important because you never know when the unexpected will happen.
A Guide to the Top First Time Homeowner Tips You Need to Know
This is an exciting time in your life. Fortunately, these first time homeowner tips will help make your experience of buying a home everything you’ve ever dreamed it would be.
Keep scrolling to find more great lifestyle tips on this blog.
