For many people, buying a home is the largest investment they will make in their lifetime, and first time home buyer tips and advice can go a long way. It can be an emotional and difficult process for first-time homebuyers to navigate through without help.
Luckily, you don’t have to go at it alone!
Real estate agents are here to help guide you every step of the way- from how much house you can afford, to finding homes that meet your needs in your price range. Their understanding of the current market compounded with their experiences selling homes in the area make them the perfect companion with first-time homebuyers.
These are just some tips to make your home buying experience smoother.
Accurately Calculate How Much You Want to Spend on a Home
The first step in buying a home is figuring out what your budget is, and then finding the type of house that fits within your price range.
You would be surprised at how many people come to me and have no idea what their budget is. Completely normal, we just need to do some analysis. I can help out with that based on my past experiences, but it’s a very personal decision.
The budget is going to dictate the rest of the process. So try to get this one right.
For example, if you have $350,000 to spend on a house, it will be more difficult to find something in the area of your budget than someone who has $500,000 or less to spend.
Once you know what you can afford for a down payment and monthly payments, it becomes easier to narrow down the types of houses that fit your budget.
Having an idea of how much you want to spend is great, then it is time for the lender to hand you reality. Time to get pre-approved.
Get Pre-Approved for Financing BEFORE Searching for Your Home
Getting your pre-approval for a home is one of the most important steps in finding and buying a new house. It will show the seller that you’re serious and will help you to get the best rates from different lending institutions.
Depending on the price of the home, some sellers won’t allow their house to be shown unless the potential buyer is pre-approved. It’s serious.
Additionally, getting pre-approved lets you know, as the buyer, how much you are able to spend.
The pre-approval process is extremely easy. Reach out to a lender based on what type of loan you’re wanting and get the pre-approval process started.
- Fill out the required paperwork. This typically includes basic personal, income, and debt information.
- Submit your credit score. This typically involves just signing a document that allows the lender to pull your score.
- Wait for approval within 1-2 days. Most of the time I’ve seen approval almost instantly over the phone. It really depends on the lender.
It’s easy to see that getting pre-approved for a home loan is not only necessary but ridiculously easy. If you’re still confused about it, though, your real estate agent can guide you through the process with a lender.
Know the Size of Home You Want Now – And Later
There are many different sizes of homes, including small townhouses and expansive estates with acreage. Choosing the right size for you should be based on your needs and lifestyle. Take a look at your needs now and what you think they’ll be in a few years.
One of the questions that many people will ask themselves when they’re thinking about buying a new home is just what size house is right for them. This decision is usually based on the needs and lifestyle of the family and isn’t solely about how it looks to others, which can be frustrating to some people.
Most people start by figuring out who’s going to live in the home and whether it’s just for two or a larger number of people or if you plan on having more kids. So you may want to ask yourself, how much space do I need now and how much will I need in 5 years?
Never Pass on the Home Inspection, You’ll Regret It Later
It’s imperative that you understand the importance of getting your home inspected before you decide to buy it. It is understandable that you want to get into an affordable home quickly but this may not be in your best interest in the long-term.
Remember, there are many costs that go into buying a house and one of them is an inspection.
If you thought about skimping on the inspection, you’re not alone. Over 10% of home buyers typically pass on a home inspection although it’s not recommended.
The inspection process isn’t too long and can be done in a single day. The best part, though, is it will help you identify any potential problems with the home. You want to make sure that your needs are met and a home inspector can do that.
You may be thinking, “It’s not going to cost me anything”. However, the costs could end up costing you more in the long-term. Inspections can uncover hidden problems that you didn’t know about.
If these faults are identified during the inspection, you have a couple options. You can ask your agent to request the sellers to fix them, or you can back out of the deal.
These Are Just the Basics
We hope this blog post has been helpful! We definitely want to make sure you get the home of your dreams.
While this is basic first time home buyer tips and advice, read some of our other posts as there are a few more crucial steps that will help ensure you find success in buying your first house.
