Home purchasing can be both exciting and daunting, so it is vitally important that you familiarize yourself with its key steps prior to beginning.
We have put together a list of tips to assist first-time homebuyers in avoiding common pitfalls when purchasing their dream home! With these essential tools at your fingertips, you will soon be on your way towards owning the ideal residence!
1. Get Pre-Approved for a Mortgage
Pre-approving for a mortgage should be one of your top priorities before beginning to search for your dream home. Doing so allows you to set realistic expectations while giving sellers more of an incentive to accept your offer.
Pre-approval involves lenders assessing your credit and income, then telling you how much of a loan they can offer you. This process usually takes from minutes to several days depending on where and how you apply.
Pre-approval can be easily obtained with any bank, financial institution, or mortgage company online or in person. Documents like pay stubs, W2 statements and tax returns will often be needed as proof.
2. Know What You Want in a Home
Before purchasing a home, it’s essential that you know exactly what your priorities are and have a list of properties that meet those desires within your budget. A trusted real estate agent can assist in this effort and will only show homes that satisfy these criteria.
One of the biggest mistakes first-time homebuyers make is failing to distinguish wants from needs when searching for their dream home. You need to develop this skill if you want your search to succeed and end up finding it!
3. Find a Good Real Estate Agent
Home buying is one of the biggest investments most people will make during their lives, and creating a budget to cover all the associated expenses is essential to successful homeownership. These expenses may include mortgage payments, insurance costs and property taxes.
An experienced real estate agent will help guide the process smoothly, so it is smart to interview multiple candidates prior to selecting your ideal agent.
4. Have a Budget
Home purchasing can be one of the biggest investments you make. Therefore, it is crucial that you prepare well so you can avoid making any costly errors that could cause regret down the line.
Initial step should be evaluating your current financial picture, including savings, mandatory monthly expenses, discretionary spending and debts.
Once you have this information in hand, create a budget for your home purchase. This will enable you to determine whether or not the house you’re considering fits your financial plan, while also helping avoid falling in love with one that puts too great a strain on your wallet.
5. Get a Home Inspection
Home inspections are an integral component of purchasing a house. Mortgage companies usually require it, and can give buyers peace of mind knowing their house is safe and well maintained.
A qualified inspector will be able to inform you if there are any major issues with the house that need to be resolved prior to purchasing, providing peace of mind and helping negotiate better prices.
Inspectors can be found both online and through local real estate offices. When making your selection, be sure to hire a certified inspector with proper licenses and accreditation.
6. Get a Home Warranty
Home warranties can be an excellent way to mitigate unexpected repair costs and replacement expenses. They typically provide coverage for major systems and appliances so you can replace them without incurring exorbitant bills from out-of-pocket costs.
Find an outstanding home warranty provider by conducting research online or getting recommendations from friends and family. Be on the lookout for companies offering excellent customer service with easy claims filing processes.
7. Make an Offer
Making an offer on a house can be both stressful and exciting, giving you one step closer to finding your ideal home.
Make sure your offer stands out by getting your finances organized, consulting a lender and becoming preapproved for a mortgage loan.
Now you will know exactly how much of a home you can afford, making you more competitive in an increasingly multiple offer environment.
