Tips for First Time Home Buyers
Updated: Sep 20, 2020
There are several steps in life that make people feel accomplished and successful. It starts with college graduation, buying your first car, marriage, family, and then buying your first home. The home buying process can be lengthy and expensive, especially if the proper preparation is not taken before purchasing a home. This article will focus on tips and tricks to make the process less stressful for first time home buyers.
Step one for anyone thinking that they will eventually want to buy a home is to save for a down payment as early as possible. A lot of first time home buyers make the mistake of only having a savings account dedicated to expenses. If buying a home is a dream or priority for you, make sure that you have allocated funds monthly to save in preparation for a down payment. A typical payment for a new home is 20% down off of the total listing price. There are some programs that allow first time home buyers to put a smaller percentage down. The best advice for this process would be to work with several lenders and loan officers to get the best deal. Do the research; it will pay off in the end.
Mortgages Scare First Time Home Buyers
Next, you want to consider how your down payment will affect your mortgage payment. There are several options for mortgages through different lenders and banks. The different types of mortgages range from conventional, fixed, adjustable, FHA loans, VA loans, etc. Picking the best mortgage for your family financial situation is crucial. For instance, the smallest mortgage payment would come from choosing a 30 year fixed rate. Of course, the shorter the loan term, the more you will pay in monthly mortgage payments. Make sure you are prepared to commit to this decision. The best way to make sure you are making the best investment in your future at the best price, is to not rush. As first time home buyers, take the time that is necessary and research loans on comparable websites.
Real Estate Agents
Aside from all of the technical purchasing work and research, make sure that you are working with an experienced real estate agent. They will know all of the ins and out of the market. There job is to find you a home that fits all of your expectations, needs, and wants, and all within your price range. This is not an easy task and you should expect a high level of communication with your agent. Ask all the questions and be present for phone calls and emails to stay informed. Ultimately, the agent is going to help you with all of the purchasing logistics and find you all of the correct contacts to work with.
The Takeaway for First Time Home Buyers
Overall, this is an exciting process, but at times can be overwhelming for first time buyers. It is essential to be active in your search and speak your mind. This is a big decision and will affect at least the next 15-30 years of your life. Best of luck and happy home searching! Hopefully, this article will help alleviate stress for first time home buyers. The next step is to check out our article on all things home insurance.