Buying your first home can seem like a daunting process. From mortgage rates to taxes to closing costs, there’s certainly a lot to consider. Because your new home will likely be the biggest investment of your life, it’s crucial that you learn about the process before you get started.
The more you know about the home buying process, the more likely you will be able to get the home of your dreams at a price you can afford. That’s why we’ve put together these six tips for helping you achieve your goal of homeownership.
1) Know What You Want
When purchasing a residential property, you’ll have several options to consider. These include traditional single-family homes, condos, townhouses, and more. Each type of property has its benefits and drawbacks, so before you move forward in the home buying process, make sure you pin down which property type will best suit your needs. As you make that wish list of desires, consider what is or isn’t negotiable.
2) Get Pre-Qualified
You’ll want to get pre-qualified for a loan. I have a great mortgage broker that I can refer you too. Many first time home buyers will opt for an FHA loan because it allows for a lower down-payment.
3) Find Out What You Can Afford & Down Payment
Dealing with financing can be overwhelming at first, so make sure you’re taking advantage of all the resources available to you. Get started by using an online mortgage calculator to see what your monthly mortgage payments would be if you bought a home today. This process will help you determine what you’ll need as a down payment. Once you have an idea of what your budget will be, give me a call, I can offer advice on how to take advantage of the current market and make the most of your budget.
4) Look at Total Monthly Cost
Mortgage payments are only part of the equation. Before you buy, you’ll want to figure out what your total monthly housing cost will be, including homeowner’s insurance and taxes. To get an idea of insurance costs, pick a property, call a local insurance agent, and ask for an estimate.
5) Where Do You Want to Live
Just as properties have their pros and cons, so do neighborhoods. Decide where you want to live, if you’re not sure where to start, it’s ok that is what I’m here for. I can help you determine the best neighborhood for your needs and budget in the area city you want to live.
6) Figure Out Closing Costs
It’s important not to overlook the upfront cost of settling on your home. Closing costs include lender origination fees, taxes, title and settlement fees, as well as prepaid items like homeowner association fees and insurance. As your realtor I’ll make sure that you are aware and understand these cost.
Ready to start searching for the home of your dreams? Give me a call, I’d love to help you get started!