Buying your first home is an exciting time in someone’s life. There is nothing quite like owning your own home. But it can be nerve-racking if you don’t have someone leading you through the process. Most first time homebuyers run into similar roadblocks.
But don’t worry! Most mistakes that first time buyers make are avoidable and correctable if caught early. Before you get into the home buying process, read and follow these tips to get started in the right direction.
- Review Your Financial Health
Banks don’t care how badly you want your dream home, unfortunately. Having your financial picture in place is important not only to get your offer accepted but to get your loan approved. Credit score is an important factor in getting approved, but lenders also look at many other things like bank account statements, credit card limits, income, assets, and more. This might sound like a lot, but it is actually good news, especially if your credit is not the best.
- Consider Programs for First Time Home Buyers
The government offers many incentives and programs for those looking to buying a home for the first time. The Federal Housing Administration (FHA), for example, offers minimum down payment programs. State governments and local municipalities also offer assistance programs. As you are looking for your dream home online, do a quick search for programs in your area.
- Do Your Due Diligence
While buying your home for the first time, it is necessary to do your due diligence. Skipping a home inspection might save you some money in the short term, but if the home has foundation issues, it will cost you down the road. Also, consider the neighborhood, parking, schools, noise at night, neighbors, and insurance for the property along with if you can see yourself living there.
- Bonus Tip: Hire a Realtor
Realtors are experts in their area and the market. A credible realtor knows the ins and outs, the latest trends, and does a lot of groundwork for you. Make sure to hire an agent who is well versed with his work, gets along well with you, helps you meet sellers, is good at negotiation, and helps you navigate the market. They will help you avoid the mistakes that you could make on your own. Plus, buyers’ agents are FREE to use. The seller actually pays for both the buyers’ and sellers’ agents, so take advance of the expertise at your disposal.