8 Lessons For First Time Home Buyers – Buying a home for the first time can be an overwhelming process which can leave room for error. From down payments to home inspections, there are plenty of aspects of home buying that are learning experiences for first time home buyers. We’ve gathered our best tips, check them out below:
1. Determine Location First
Narrowing down where you want to live can be difficult. So many neighborhoods and areas to choose from can be fun but can also make it harder to decide. This is the one thing you can not change about a home so make sure you are happy with the location you are searching in.
Don’t commit to a home before you’re ready. It is a big commitment with maintenance, unknown expenses, etc. Prepare yourself by knowing what it is you are going to be paying for your new home and budget accordingly. Does it make sense? Are you ready?
3. Down Payment
Make sure you have a great down payment. Talk to a lender to determine which loan might be right for you and what down payment is required. Give yourself time to determine if you want to save up and add more to that number or save it to work on your new home. Either way, you can’t go wrong with a solid down payment.
Some homes come with a Homeowner’s Association. Know if the home you are buying has an HOA fee and know what it entails. Sometimes this means your neighborhood has a pool or park that is maintained by the HOA. With the HOA also comes restrictions. Know what you can and cannot do with your new home. Maybe you can’t build a fence. Or maybe you can but it has to be a certain type of fence. Things like this may affect your buying decision.
5. School District
Whether this is important to you or not, you should weigh the resale value of the school district you are moving into. Will it be hard or easy to sell? Does it decrease or increase the value of your home? Know the details of this before buying.
6. Home Inspections
Hire an experience and thorough home inspector. They will be able to help you uncover any problems you might have before moving into your new home. From big to small repairs, a home inspector should be able to let you know what condition the home is in right now.
7. Watch Home Much You Spend
What you qualify for and what you can afford or want to spend may be two different numbers. Make sure you determine a price that work best for your budget and your comfort level. You may qualify for a $500,000 loan, but you feel more comfortable buying a home around $400,000. Determine this first before looking for your next home.
Make sure you have an experienced real estate agent in your corner who can help guide you through the negotiation process. Negotiating is an art and there is a strategy to the madness. What to offer? When should we close? How much should we ask for closing costs? Should we negotiated repairs? All of these things can be easier to determine when you have a real estate agent who knows how to guide you through the process.
Keep these lessons in mind when buying your future home! What tips can you share? What was your first home buying experience like? Comment to share with us!