Purchasing a home for the first time can seem like a long and exhausting task, leaving some home buyers with the urge to buy the first property they see or continue renting. I’ve provided a list of helpful tips for first-time home buyers to make the buying process as simple and stress-free as possible.
Consider Your Long Term Goals
Determining your homeownership goals is a huge milestone when getting ready to purchase a home. Are you trying to buy a home to reduce mortgage payments or do you like the concept of being a landlord?
Weigh out the pros and cons of the different types of residential properties including traditional single-family homes, duplexes, townhouses, condos, etc. A fixer-upper is another property to consider as it allows you to save on the purchase price.
Making a list of qualities you desire in a home is a great way to narrow your options and again, save time. Think about the neighborhood you’re looking for, bathroom layout, kitchen layout, etc.
It’s critical to get pre-approved for a loan prior to placing an offer. Often times, sellers won’t even consider an offer unless it’s paired with a mortgage pre-approval. Do this by applying for a mortgage as well as all the required paperwork. The lender will verify the information and then they will pre-approve the buyer for a specific amount. Although you could qualify for a hefty mortgage, there are costs that need to be paid for upfront. It’s important that you have some money saved so you can afford the down payment.
Understanding the Home Buying Process
The first and most obvious step is finding a house that’s within your price range. Don’t walk into an open house without a real estate agent because it could be a difficult situation if you’re dealing with a seller’s agent.
If you do find yourself on a tight budget, seek homes that are full of hidden potential. There may be a few items here and there that are unappealing such as wallpaper or the carpeting, but don’t turn away from a property whose size and locations fit your needs. It’s advised that first-time home buyers should purchase a house that they can add value to.
Fortunately, first-time home buyers have a variety of choices such as the Federal Housing Authority Backed Mortgages or down payments between 3%-5%.
Ready to Make an Offer
Always make sure to check your budget one last time before submitting an offer. Take into account closing costs, repairs, appliances, etc. If you’ve found a larger home, think about utilities costs. Once you’ve made the deposit, this transaction will turn into escrow where the seller has about 30 days to take the property off the market.
If you’ve found your dream home or you’re just getting started, feel free to contact me at 617.968.0022. I’ll help you determine how much money you’d like to offer and I will present an offer to the seller’s agent.