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.
Set a budget.
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.
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.
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:
In random order:
- 5 Steps to Buying a Home That Won’t Bust Your Budget by Dave Ramsey | Post Link
- 8 Financial Tips for Buying Your First Home by Kumiko | Post Link
- How Much Should I Save For a Down Payment? by Brian O’Connell | Post Link
- How to Buy a House with Bad Credit in 6 Steps by thelendersnetwork.com | Post Link
- Home Loan Tips for First-Time Home Buyers by creditrepair.com | Post Link
- Negotiations You Might Have to Make When Buying a House by Courtney Price Davis | Post Link
- 10 Negotiation tips for buyers by Glenn and Ben Gohlke | Post Link
- 7 Effective Negotiation Tactics When Buying a Property by Maxim | Post Link
- First-time Homebuyer Trend for 2018: Advice for Savvy Families by hometrek.org | Post Link
- Top 10 Things First-Time Home Buyers Should Know in 2018 by Brandon Cornett | Post Link
- 25 Tips for First-Time Home Buyers by Emily Starbuck Crone | Post Link
- How To Buy Your First Home: A No Nonsense Step-by-Step Guide by Jon Gorey | Post Link
Last modified: May 27, 2020