Tips and Tricks for First Time Home Buyers

Written by Posted On Wednesday, 03 January 2018 10:47

Buying a house for the first time is an exciting experience. It can also be incredibly stressful, and full of many confusing details. A home is likely the most expensive thing you will ever buy, and you want it to be just right. These tips and tricks will help you navigate the process of buying your first home and get you your best deal.

 

Start Saving Early For A Down Payment

Many mortgages require a twenty percent down payment, although many lenders now permit loans for less. FHA loans, for example, will be awarded to home buyers of relatively good financial standing for as little as 3.5%. However, the larger your down payment, the sooner you will pay off your mortgage. This means your home will ultimately cost less overall because you will not be paying interest on the loan for as long.

 

Use A Real Estate Agent

While hiring a real estate agent is not always necessary, it is usually the right move for someone buying a house for the first time. It is a real estate agent's job to know the local market thoroughly. They can help you find a house with the features you want within your budget and in the neighborhood you want to live in. They can help you navigate the buying and closing processes, which are often riddled with confusing paperwork, legal considerations and other potential pitfalls. A good agent is a teacher, not a salesperson. If you have not been through the experience before and have no idea what you are doing, getting a professional to help is advisable.

 

Buy Less House Than You Can Afford

This is some of the best advice you can take to heart while buying a house, especially in a post-housing crash world. You never know what will happen to either the local or national real estate market, or your own finances. When deciding your price range, take into account your incomes and other financial commitments. Also consider what will happen if you or your partner lose a job - will you still be able to make your mortgage payments? Be sure to take closing costs into consideration when budgeting for your first home.

 

Know What You Can Fix And What You Can't

It is very likely that a starter home will have some sort of problem with it. Buying a fixer-upper can have significant benefits, such as being substantially cheaper. However, you also have to be realistic about what you can handle. For example, a new roof might not be a significant factor if you can get the sellers to put one on as a condition of the sale. However, foundation problems or health hazards such as black mold or asbestos might be deal breakers. Have a realistic handle on your skills and perhaps find a good deal on a perfect home that just needs a little work.

 

Book The Movers Early

Certain times of the year are more popular for moving, and moving companies will have their schedules booked up fast. It's very important that as soon as you know the date on which you will be moving to call Dallas moving companies. Obtain quotes, ensure they are insured and then book the company you like as soon as possible. You don't want to get stuck with no movers being available on the day you need them.

 

If at all possible, do not rush into buying your first home. Take the time to save up for a down payment and have your debt under control when you go to apply for a loan. Know what you are capable of repairing yourself, what you need to hire a contractor for and know what problems you need to pass on. Perhaps most importantly, wait around for the right home to come onto the market. If you take the time to educate yourself about the process and then make the right decisions, it will make buying your first home significantly easier.

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Sofia Belnap

Sophia is passionate about writing in the real estate and home improvement spaces. When Sophia is not writing she loves reading, cooking, and spending time with friends and family.

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