Useful Tips for Buying Your First House
Choosing to buy your first house is a major decision. As tempting as it is to buy the first home you fall in love with, it’s important to keep your financial goals in mind. This is especially important given the term of most mortgages (15- or 30-years). A wrong decision can have long-lasting effects on your financial health.
First-Time Homeowners Need to Be Prepared
The process of purchasing your first home can be overwhelming. With so much information to process about the home itself and how to finance such a major purchase, it’s easy to make a wrong decision. However, by doing your research and being prepared, you can minimize any negative impact on your financial goals and still get the home you’ve been dreaming about.
Understand What Everyone is Talking About
As excited as you may be to purchase your first home, if you don’t understand the terms your real estate broker or loan officer is using, the entire process can quickly be too much to handle. The best way to tackle this is to learn as much about the process as possible before you get started. This can be done by reading on real estate and mortgages or even by watching real estate reality shows.
Things to Do When Buying Your First House
Once you’ve decided to buy your first home, you need to start preparing yourself for the major decisions coming your way. Here are some useful tips to help you through this process:
- Get financially prepared by paying off debt and growing your savings.
- Make a budget on what you want to spend, including the costs of the home, lending fees and closing costs, repairs, etc.
- Shop around to select the lender that will offer you the best financing and apply for pre-approval.
- Work with a realtor to find homes that meet your criteria– design, space, neighborhood, commute time, etc.
- Once you find a house you love, make an offer that is within your budget.
- After your offer is accepted, prepare for the closing of the sale and get ready to move into the next chapter of your life.
Make a Budget and Stick to It
When you’re buying your first house, it can be easy to get carried away with upgrades, additional features, extra space, etc. However, you need to be realistic about what you can afford. This is why a budget is so important. Once you decide to make your dream of homeownership a reality you need to create a budget that includes the cost of the house, any repairs, maintenance, or upkeep, as well as the extra costs that come with closing the sale and financing the purchase.
Do Your Research
The best tip you can get when you start the process of purchasing your own home is to do your research. By doing your research you will understand the transaction, be able to make an informed decision, and fully participate in the transaction. Being informed will help you make decisions that will keep you on track towards your overall financial goals.
Take the First Step Today!
The largest sticker price of most homes can make it difficult to understand what you will be paying monthly. You can take the first step towards creating your budget by using the Mortgage Calculator to estimate your monthly mortgage payment. Mortgage Solutions Financial loan officers can help you understand your estimated monthly payment and discuss available financing options. Contact us today to help you start your journey towards buying your first house.