Buying your first property can be a tricky process as a first time home buyer with no experience . Buying your first home is a big deal after all, it’s probably the most valuable item you’ll ever buy in your life, so you’d want to make sure you do everything right. Here are 4 tips that all first time home buyers should follow when shopping for their first home.
Create a budget
Too many buyers get lost in the excitement of buying a home, that they stop thinking logically and instead focus on finding the house of their dreams. This dream quickly shatters when they find out the home is worth way more than they can afford, leaving them often deflated.
Using your salary and any other earnings you make, figure out how much you can realistically afford to pay out each month for your mortgage. Don’t forget to factor in other living costs such as food, commuting, utilities, and all other home associated costs. Once your budget is complete, you’ll have a much better idea of what you can afford. Many first time home buyers make the mistake of not creating a budget, and only after purchasing their first home they start to realize they cannot afford it, and by then it’s all to late.
Finding the right real estate agent
Researching online is a fantastic way to get clued up on what to look for when buying your first home, things to avoid, and what to prepare for. However, one thing it doesn’t provide you is experience, finding the right real estate agent who can find you property’s within your price range, in the right areas of town, and help you through the whole process is a critical. A great real estate agent who is familiar with the local area can help you to avoid common mistakes that first time home buyers usually make.
Do adequate research
Need a home near a school for your children? Maybe you need to commute to work everyday and need something close to the train station? Whatever your needs are, research, research, and then research some more! After getting the mortgage and signing the dotted line, the last thing you’d want to find out is that your new neighborhood has a high crime rate, or the closet public transport links are 25 minutes away.
According to a study done by Forbes, they estimated that approximately 15% of all home buyers wished they’d of done more research on the surrounding areas before making a purchase. Don’t be apart of that 15%!
Save yourself the headache and get pre-approved first, many home deals fall apart at the last minute because the buyer couldn’t find a lender to give them a loan. Go to various lenders such as national and regional banks, credit unions, and local lenders. Compare each loan and see which one is best for you, if you’re unsure what to make of these loans, feel free to give me a call or pop into my office, I am more than happy to help.
Once you’ve decided which loan provider to use, it’s time to get yourself pre-approved. Depending on the lender they may sometimes charge a fee to become pre-approved, so be sure to ask them about that before hand. Most pre-approvals tend to be valid for around 60-90 days, if you’re unable to find a home in that period, you may have to start the whole process again.
Being a first time home buyer will probably be one of the most difficult things you’ll ever do in your life, with so many procedures to go through, it’s no wonder most people dread the thought. With the tips provided today, I hope to make your first time buying experience a pleasant one.