Buying a home is a big event, but a process you’ll want to go into with plenty of knowledge on the subject. Not only do you need to figure out where and what you’re looking for, but you also need to deal with the less fun, but necessary, aspects of buying a home. This includes getting approved for your mortgage, selecting the right professional to help you, and finding a home that falls within your budget without sacrificing on your needs significantly.
Here are some things all first-time homebuyers should keep in the front of their minds:
Overall Picture
Try to avoid the mistake of only focusing on the monthly mortgage payment. There are other costs associated with owning a home including taxes, homeowner’s insurance, homeowner’s or condo association fees, and significant maintenance expenses that tend to pop up. These costs, such as taxes or insurance, are also subject to increases at any time. Ensure that you’re only buying something you can realistically afford on your budget.
Qualify Now, Look Later
The fun part of buying a house is looking at all the prospective homes and thinking about how you can make them your own, but the first thing you should do is get pre-qualified. Some first-time buyers don’t get pre-qualified because they don’t want to be denied or get approved for a smaller amount than they need for the home. Get approved first to ensure that you’re making your final purchase decision based on finances instead of primarily on emotion.
Seek Professional Help
The real estate market isn’t the easiest thing to navigate, especially for someone who has no prior knowledge of the topic. Consult with an agent, broker, or loan officer to get the ball rolling. Professionals know the ins and outs of buying homes and can move things along much faster than if you were to do it all on your own. From helping you secure financing to finding listings through listings such as Brace Homes, a professional can handle the smaller details while you focus on finding the perfect home.
No New Loans
Once you’ve been pre-qualified for a loan, don’t go applying for new credit cards or lines of credit. Lenders pull your credit reports before closing to check your financial situation. A new account or drop in your score can jeopardize the entire process. Be smart and wait until closing before going on a shopping spree.
Go into the home buying process as an educated buyer. Keep these tips in mind and you’ll find the home you want while staying financially responsible. You’ll be thanking yourself for taking the time and effort after you finally sign your closing papers and get your keys.
