How to Buy and Save Money on Your First Home Plus Top 12 Good Read Articles

Written by Real Estate

Buying a home is one of your biggest financial decisions as an adult. This is probably among the major decisions that anyone can make no matter what your status is. If this will be your first home, you need to be smart about it and make sure that doing so won’t burn a hole in your pocket. There will be quite a lot of considerations that you have to take, as well

Find a suitable location.

Your location is an important factor that you need to choose before you finally purchase a home. Your location will affect the price of the home. Properties in big cities like Los Angeles and New York are pretty pricey. But when you go a few minutes out of the city, you can find more affordable homes. Just keep in mind that each location has its own set of advantages and disadvantages. In addition to that, you need to find one where you can see yourself living for a long time. Do you want to live near your workplace? Are you looking for a house that’s close to a good school district? You need to think hard about this as you’d want to live and keep the home for not less than seven years at least. You’ll be spending thousands of dollars on a home and getting out of it will be just as costly.

Set a budget.

home buying budget

photo daveramsey.com

Find out how much you are able to afford. Make sure that you know the price range of the homes in your location of choice. This will vary depending on the size of the house and the type of property. Check with different property listings online so you are able to have a glimpse of the cost of different homes. Setting a budget for your home will also guide you on what you can and cannot afford. You have to be realistic about your budget and your income. You wouldn’t want to put all your money in your home. Make sure that you set a reasonable amount for a house that you’ll live in a good number of years.

Save for a downpayment and boost your credit score.

boost your credit score infographic

photo thelendersnetwork.com

Once you’ve identified how much you’re able to afford, work your way into saving for down payment and improving your credit score. Many younger buyers are often plagued with credit score problems. Make sure that you boost your credit ratings while you are saving for a big down payment on your dream home. Your score will affect your mortgage. A bigger credit score will ensure that you get the best interest rates, as well. Set aside enough money for your home’s down payment. Ensuring that you can provide at least 20% of the home price as down payment will also give you better mortgage terms.

Shop for a loan.

Take the time to look around for a good home loan. You need to check the different financing options that are available to you as a first-time buyer. Check rates from different lenders so you can get the best rates. Look for the best loan type with the best payment options. Most home buyers go for the typical 30-year loan. But, there are different mortgages that you can check if you want to pay off the house faster and save on interest.

Negotiate.

Negotiation can make a difference when you’re buying a home for the first time. Being comfortable and good at negotiations will help you save big on this major purchase. Your goal is to agree with a seller on a good price. Make sure that you don’t offer a really low price as this can offend the seller. Another option is to ask your lender to cover the closing fees of your purchase so you can save a couple of hundred dollars.

 

Top 12 Good Read Articles to Read Before Buying Your First Home:

home loan tips for first time buyers

photo bankbazaar.com

 

In random order:

  1.  5 Steps to Buying a Home That Won’t Bust Your Budget by Dave Ramsey | Post Link
  2.  8 Financial Tips for Buying Your First Home by Kumiko | Post Link
  3.  How Much Should I Save For a Down Payment? by Brian O’Connell | Post Link
  4.  How to Buy a House with Bad Credit in 6 Steps by thelendersnetwork.com | Post Link
  5.  Home Loan Tips for First-Time Home Buyers  by creditrepair.com | Post Link
  6.   Negotiations You Might Have to Make When Buying a House  by Courtney Price Davis | Post Link
  7.   10 Negotiation tips for buyers by Glenn and Ben Gohlke | Post Link
  8.  7 Effective Negotiation Tactics When Buying a Property by Maxim | Post Link
  9.   First-time Homebuyer Trend for 2018: Advice for Savvy Families by hometrek.org | Post Link
  10.  Top 10 Things First-Time Home Buyers Should Know in 2018 by Brandon Cornett | Post Link
  11.   25 Tips for First-Time Home Buyers by Emily Starbuck Crone | Post Link
  12.  How To Buy Your First Home: A No Nonsense Step-by-Step Guide by Jon Gorey | Post Link

 

 

Last modified: April 4, 2018

3 Responses to :
How to Buy and Save Money on Your First Home Plus Top 12 Good Read Articles

  1. Crystal says:

    Great for first time buyers! Love it!

  2. Bryan says:

    So many factors come into play when you buy a home. Another one that I stress to others is to not get carried away and try to be at least a little modest. If the bank approves you for, say, a $300,000 home, try to limit yourself to a house priced slightly less. Your household cash flow will be much better and you won’t have that “house poor” feeling many experience who give up far too much cash each month to pay for their home.

  3. I’ve just bought my new home! Tip #1 is truly the key 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *

Bitnami