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What To Know As A First Time Home Buyer

House Market Solutions Real Estate Basics What To Know As A First Time Home Buyer

what to know as a first time home buyer

What to know as a first time home buyer is that you’ll want to ensure everything goes smoothly. It is basically everyone’s dream to have a home of their own someday. It is the one place that we can call our very own and a place where we can go to and feel safe, be at peace, and raise a family in comfort. It is the very essence of the American Dream.

However, for many people it can be a nerve-racking experience. All of the details can make the home purchasing experience an unpleasant one especially for first time home buyers. Though this may be the case, there are tips that you should know that will make buying a home a little less painful.

When looking for a very first home, many people are focused on the aspects of the house that they want. They are hoping that this home will be the perfect fit for them. Knowing what you want is great. However, you may not be aware of all the things that go into buying your first home.

What to know as a first time home buyer

Practical

The first step to take when buying a home for the first time is to decide on the kind of house you want. You’ll want a home that you’ll enjoy. Among the significant home types, you can choose include condos, single family home, multi-family home, townhouse and so on. You will be living in your choice for many years.

Before you plunge into the buying process, you’ll want to also decide on the essential features you want in your ideal home. These will include the environment, the home size, the kitchen layout, bathroom layout, sitting room size, bedroom size and so on. You’ll want to consider all of these before you take the next step. This is what to know as a first time home buyer when looking forward to getting the right fit for you.

The neighborhood where your ideal home is located is very important. If you’re buying a home for the first time, you must put this into consideration. You’ll likely want a neighborhood with a pleasant atmosphere, adequate security, and essential amenities nearby. You should make proper inquiries about them before you agree to pay a dime for the home.

Financial

Check your actual budget for the home and have a plan to raise the necessary funds. Perhaps you’ll want to start with a small or medium-sized house which you can easily afford. If you’ll be using a mortgage or loan to secure the home, you still need to plan your budget according to size and other considerations. 

You’ll want to consider how much mortgage a lender will be willing to offer you for the purchase of the new home. So, check with a mortgage broker for a pre-qualification.  In most cases, lenders consider a lot of factors before offering mortgages. Apply to several lenders to discover how much they are willing to provide. This pre-qualification amount will have a significant impact on the type of home for which you should be looking.

Before looking for a house to purchase, it is always recommended to get a pre-approval from the bank for the loan. Searching for a property without a pre-approval will only lead to disappointment. Imagine losing the house of your dreams to another buyer, just because your competition had a pre-approved loan. 

Check the available homes listed for sale around your area. Take your time to compare them so you can select the best option that can suit your budget. You can search for available offers through MLS listings in your area. You can equally search many other online resources that offer homes for sale.

Before you go ahead to purchase a home, what to know as a first time home buyer is to check what your total monthly housing expense will be. This includes homeowner’s insurance, taxes, potential HOA fees, PMI for FHA loans, and other housing expenses. If you’re able to get a solid estimate, this will also be a crucial to your decision-making process.

Apart from the upfront cost, you still need to know the details of the closing costs for the home. These will include the fees charged by your lender, homeowner association fees, title fees, settlement fees and so on. Having a rough estimate of these costs will help you in making the right decision for your ideal home.

Knowledge

Know your stuff 

Spend some time to learn a little more about real estate. Talk with an agent and ask a few questions so you can become familiar with the market. You could ask about home inspections, including what do they consist of, what are the costs, and when should they be performed. 

Research Extensively

The most important thing to remember while embarking on the journey to purchase your first home is that the more you research, the higher your chances of finding that ideal home for your family. If you enter the real estate market without much preparation, you may be quickly fooled by experienced sellers, so always be well-versed with the latest happenings in the market. 

Legal Protection

Locate a good real estate agent

You will want the help of a reliable real estate agent when buying a home for the first time. Most agents know a lot about available offers and the right prices. Realtors follow a code of ethics and have an obligation to represent your interests to the best of their abilities.

Involve Your Lawyer

Before you agree to sign any real estate contract for the home of your choice, you may want to contact your lawyer. Make sure he endorses all the paperwork and other processes involved. This will protect you against any legal issues that may arise in the future.

Create A Rigid Contract

Before you sign the agreement with the seller, ensure that you have correctly gone through the contract. Ensure that you agree with all the clauses that the seller has imposed. This is why it's so important to hire a lawyer and a real estate agent to help you out so as to avoid trouble.

When it comes time for the actual process of buying your ideal home, you might be surprised at how complicated it might all seem. Perhaps what to know as a first time home buyer is to prepare yourself for everything that will come your way, all the emotions, excitement, possible headaches, and the details that you need to remember about the house itself, the terms of the purchase, paperwork, etc.  Of course, at House Market Solutions we can help you with the entire process of buying your first home.  Contact us today to learn more.

This article is a part of our “Real Estate 101” series of posts, written to make you aware of the basics.  Click to learn more.

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