- 7 Tips for First-Time Home Buyers
- Owning a home is more expensive than paying rent
- Creating an emergency fund is very important in the home buying process
7 tips for first-time home buyers. The dream of buy the first house It is all a dream full of emotions. But we must not overlook that various feelings are faced in the process because the process of finding the dream property is also overwhelming.
It is important to note that in the process of buying a house, do not get carried away by your first love as to the first property you see, there are many points that you should evaluate and seek the advice of a realtor who knows the market and who will help you to find the best deals with the interest rate.
First: Get rid of debt and create an emergency fund
Buying a house and being the owner of it turns out to be very expensive, it can even be more expensive than when renting a property. Why? Because when you are the owner of a home, it is your responsibility to maintain it. This is why it is very important that you have an emergency fund for any setbacks that may arise.
Likewise, when you buy a new house you will want to decorate and furnish it with everything new and this also incurs additional expenses in the process of buying and closing the property, and these extra expenses will be covered with the fund that you allocate for that purpose although at the same time first have some empty rooms.
Second: Have a budget of what you can spend
As we explained earlier, you can’t get carried away with love at first sight when you’re in the process of finding your dream home. You must focus on the budget that you have allocated for these purposes, and based on them choose the property.And remember that within the budget you must include other expenses that go hand in hand in the process of buying the house, such as the monthly payments of the house, its services, any repair that occurs on a day-to-day basis, among other economic details that may arise.
For example, if your monthly income is $ 4,000 per month, multiply that amount by 25%, which would be the monthly payment of your property, the monthly payment would be $ 1,000, based on a fixed mortgage of 4% interest to one period 15 years, not including taxes, insurance, among other additional costs.
Third: Save for closing costs
It is important that you keep in mind that when you buy your house, along with the down payment you will make on the property, you will also have to pay the closing costs. On average, closing costs range from 3% to 4% of the cost of the home. The exact amount will be confirmed by the person who helps you manage the mortgage loan and, in many cases, this helps you get the best cost.
It is for this reason that it is very important that you save so that the amount you must pay in the process of buying your property does not affect your economy and avoids the need to resort to other loans to get that money.
Fourth: Get pre-approved for the loan
After you are sure that you have enough money to cover 20% of the cost of the property plus closing costs, you will be ready to get the rest of the money approved through a mortgage loan.
Pre-qualifying for a loan will help sellers see that you are seriously focused on buying a property and can step up the market for home buyers within the United States.
Fifth: Focus on a property that suits your budget
In the property purchase market there are different categories of properties, from the most expensive to the most economical, and all of these for the type of budget that the potential buyer handles in the process of buying the home of their dreams.
The ideal and most reasonable thing is that you stay focused on making a list of possible properties that suit your budget so that you can negotiate with the seller and reach an agreement that does not exceed the economic limit that you allocated to acquire the property. Filed Under: Early Home Buyers Tips.
Sixth: Choose the location of the property you want
In the process of searching for a property to buy, many have certain requirements that the property must meet in order to purchase it. Part of these requirements is the children’s school, which is a very important issue because as parents, the priority is the education of the children and choosing a property within the locality of a good school is very important.
With the advice of the realtor who is advising you in the search for your property and a market study, you can create a list of possible homes that meet those requirements that you are looking for and be able to negotiate based on your budget. Analyzing the crime rates in the location of the property is a priority so that you can live peacefully with your family in the house of your dreams.
Seventh: Open Houses can help you decide
After you determine the location of the house you want to buy and visit its surroundings to confirm that the environment is pleasant and safe for you and your family, you can verify with your realtor the houses that are for sale in that area and attend the open houses that are available.
Open Houses help you learn more about the environment of the property and compare with other places. It can also help you analyze options based on market prices and a good location. These points are important because they can add greater long-term value to your property. Filed Under: Early Home Buyers Tips.