Home buying is a process especially if it is your first time buying a home. These tips for first-time homebuyers will help you navigate the process better, save some money, and officially close the deal.
Here are 3 tips to help prepare you:
1. Be Sure You are Ready to Commit & Start Saving Early
Buying a home is a major commitment. You’re going to have to spend money at first & when buying a home, here are the main costs to consider:
- Down payment: Your down payment requirement will depend on the type of mortgage you choose and the lender. Even a small down payment can be challenging to save so it’s important to be aware. Some loans aimed at first-time buyers are as little as 3% down. Decide a goal and set up automatic transfers from checking to savings to get started.
- Closing costs: These typically range from 2% to 5% of the loan amount. This is what you would pay to finalize your mortgage.
- Move-in expenses: After the home purchase, you will need some cash. Be sure that you set money aside for things like immediate home repairs, furnishings, & any upgrades you would like.
2. Work with a Real Estate Agent
To find your perfect property, work with a real estate agent or realtor. They are professionals who are experts in the home buying process.
A few ways a realtor can help you:
- Show you properties (maybe some that you may not know of) that will fit your budget & needs.
- Answer any questions you have about the properties.
- Attend the closing with you to make sure that everything is in order with your sale.
Be sure to always choose a realtor that is qualified & make sure it is someone you trust to help you buy a home.
3. Hire an Inspector
Be sure to hire a professional inspector before you commit to buying a home. An inspection is different from an appraisal.
Inspection: The inspector tells you about any problems with the home. These can be issues that you can’t even see with your own eyes and could be underlying issues. You will then use these results of your inspection to learn more about your home and see what you will be working with.
Appraisal: This is where your appraiser only gives you and your lender an idea of how much your home is worth.
This is a big and exciting process, but make sure that you’re 100% ready for homeownership before going forward.