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

5 minutes of reading

Mar 8, 2019

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.

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.

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.