Purchasing a home is likely to be one of the biggest decisions of your life, impacting you, your family, and your monetary future. There are a number of things to consider, from your finances to the housing market. While the process can seem overwhelming for a first-time home buyer, you can make the journey easier by being proactive, doing your research, and partnering with the right real estate professionals.
#1 Work with The Right Realtor
It’s essential to work with the right real estate professionals to optimize your home-buying journey. An experienced, reputable, and qualified team of agents can help you find the home of your dreams within your budget, guide you through the paperwork, and negotiate for you too.
For example, many home buyers like working with the realtors at The Shawn Lepp Group because they have over a decade of experience, are highly ranked, offer excellent customer service, and can assist first-time home buyers with different needs.
#2 Examine Your Finances
Examine your finances to understand what you can afford and set a realistic budget. Review your credit reports and payment history to ensure they’re up-to-date and accurate. Your credit will impact your relationship with your lenders. Fortunately, you can get a free credit report from a major credit bureau.
#3 Save A Down Payment
You’ll need to have a down payment saved up for your home purchase. For a home valued at $500,000 or less, you’ll need at least 5% of the purchase price. However, a larger down payment can reduce your borrowing rates.
#4 Get Mortgage Pre-Approval
Getting pre-approved for a mortgage will help you understand your price range. It will also show sellers that you’re serious about buying a home. You can get pre-approved for a mortgage through your bank or another lender.
#5 Shop Around for Rates
Shopping around for mortgage rates can help you find the best rate. Speak to several lenders and compare rates and terms. Different lenders may offer different rates, terms, and incentives.
#6 Have a Home Inspection
After finding a suitable property, you must have a professional inspect the home. They can help identify problems that you may not see. For example, they may find faults in the electrical system that require significant repairs.
Learning about any issues with the home can help you prepare for maintenance costs and improve your bargaining position during the negotiation process.
#7 Making the Offer
Work with your experienced realtor to make the offer. Depending on the nature of your housing market and the demand for the home, you have to adopt the right strategies to win a bidding war.
Sometimes, it helps to write a cover letter. A sincere cover letter may help a first-time home buyer win a bid over a candidate looking for an investment property.
#8 Prepare for Closing Costs
You’ll need to prepare for your closing costs, as they’ll be due when you close on the home. Closing costs are typically 2-5% of the purchase price and may include payments like attorney fees, appraisals, and title insurance. Budgeting for these costs will help you avoid last-minute financial hurdles.
#9 Prepare for Post-Purchasing Costs
After signing the dotted line, you should have money in your account for your first mortgage check, moving costs, and other post-purchasing expenses.
Remember to update title documents, transfer utilities, and submit a change of address with your local post office. You’re now the proud owner of a new home.
