10 Important Tips for First Time Home Shoppers

10 Important Tips for First

Time Home Shoppers

 

 

Buying your first home, at any age, is an exciting experience that most people dream of. Unfortunately for most first time home buyers, the process of buying a home can be a stressful and time-consuming experience if you don’t know the important steps you need to take. 

 

Here are 10 important tips for first time home shoppers:


 

#1 Start Saving Money for a Down Payment Early

Preparing to start shopping for a home doesn’t just include looking at homes online. It also includes getting your personal finances in order and seeing what you may be able to afford. Start saving for a down payment earlier rather than later so that you’ll have a good idea of what you can afford. 

 

#2 Explore Different Down Payment

and Mortgage Options

Many people do not know the many different mortgage options available. As a first time home  buyer, you’ll be undoubtedly excited about finding your dream home, but make sure to take the time to research the different options that are available to you. Choosing the right type of mortgage can boost your chances of approval or even save you money in the long run. 

 

#3 Check your Credit Score 

It is always good to check your credit score periodically, even if you are not planning on purchasing a home anytime soon. The better credit score you have, the better interest rate you’ll get from your lender. Before applying for a loan, pause any new activity and check for any errors that may have lowered your score. 

 

#4 Get a pre-approval letter

In order to make an offer, you will need to have a pre-approval letter from your lender to show that you are able to afford the home. Many sellers won’t look at an offer if they don’t have assurance that they can actually get the loan.

Before engaging in your home search, get pre-approved so that you aren’t scrambling to do so once you find your dream home. This letter will also help your agent see the max price you can afford, which will help them narrow down your home search.

 

#5 Hire the Right Agent

Hiring the right agent can make or break your home buying experience. Start by researching top agents in your area and reading their reviews. Another great way to find a good agent is by asking family and friends to see who they used. Don’t be afraid to interview several agents to determine who you would work best with. Also, make sure to choose a realtor that has knowledge of the area you are looking in. 

 

#6 Research the Neighborhood You Want to Be In.

Depending on what you want in a neighborhood, it is good to research beforehand to see what areas you should limit your search to. Think about whether you want available amenities, a short work commute, walking distance to restaurants, etc. We highly suggest going to as many open houses in a specific neighborhood that you’re interested in because this can give you an idea of what the neighborhood is like during that time of the day. The more you know what you want, will make it easier to find your new home. 

 

#7 Make a List of “Must Haves” that

You Want In A Home

Making a list of non-negotiables before you start seriously shopping can help narrow down your search immensely. Consider your lifestyle and values. Location, size, amenities, etc, are all things to think about before you start looking. Once you get out there and start seeing the properties that fit your needs and wants, you can then reevaluate your list and get a better sense of what’s available and what you might need to take off your list. 

 

#8 Budget for Other Costs

Being a first time home owner, most don’t know the true cost of money that you’ll need to have for the transaction. Some of these extra costs include due diligence, earnest money, closing, repairs, and appraisal. Before making any offers, talk to your real estate agent and mortgage lender about these costs and what amount to expect based on the price range you are looking in. 

 

 

#9 Research and Compare Homeowners Insurance

Homeowners insurance is often a cost that many people forget to factor into their monthly mortgage payment. Prices can vary greatly between homeowners insurance companies so make sure that you research 3-5 different companies to get the best deal. 

 

 

#10 Stick To Your Budget

Everyone has gone through times where sticking to a budget can be difficult. Before home shopping, calculate a monthly home payment that you would feel comfortable paying according to your maximum loan amount approved by your lender. This will ensure successful homeownership. 

 

As you can see, there are many different tips to ensure that you have the best first time home buying experience.

 

Let us know how we can help you

with your real estate needs!


Post a Comment