Buying your own home for the first time could be both a thrilling and fun experience, as much as it could be nerve-wracking. It’s only normal to feel nervous and excited especially if it’s a milestone as big as buying your first home. But with the proper checklist and learning all the details in the whole process could make the experience smoother and much more satisfying for you.
From saving money to choosing the right deals, and then eventually sealing them, here are some tips you can follow:
Manage Your Budget
There would be a lot of costs that you would need to be saving for and those would be the down payment, closing costs, and the expenses when you move in. The down payment of the property would be dependent on your mortgage and the lender. For some, there is quite the first-time home buyer advantage with conventional loans offering at least 3% of down payment. Calculate the down payment in order to decide on a goal and then have the checking switch into savings in the automatic transfers.
Explore Your Options When Choosing a Mortgage
- Look at different options since there are several offered by reputable mortgage companies that you could choose from, and this would give you an idea of what you think suits best for you. There are four mortgage categories:
- Conventional mortgages, which hold no guarantee from the government but with offers of down as low as 3%
- Federal Housing Administration (FHA) loans allowing at least 5% down payment
- U.S. Department of Agriculture (USDA) loans, which are typically targeted towards rural housing and don’t require a down payment
- Veterans Affairs (VA) loans offered for retired and current military personnel
There are also options for the terms in mortgages, and most buyers settle for a fixed term for 30 years.
Check and Ensure a Great Record on Your Credit
A good record on your credit score will determine if you qualify for a loan, and this would mean a thorough check if you’re paying your bills on time and your balance is low on your credit card. Typically, about 30% of the whole monthly income of the home buyer would be the basis of lenders when it comes to the overall expenses of the house. You can choose to track your credit score in order to have a general idea of where you stand when it comes to applying for a mortgage.
Be Mindful of Choosing the Right Agent
Choosing a real estate agent is also crucial so it’s important to really choose a good one. A good agent wouldn’t hesitate to do research and really look for available homes in the market with great deals, while also guiding you through the whole process up until the sealing of the deal.
It’s important that you choose the right one since it would be your first time buying a house and you would need all the guidance you could get. You can have more choices by choosing to get referrals or interviewing agents in order to be really sure.
This is a gist and a simplified list of what to expect and what you’ll need once you decide to go through the process of buying a house for the first time. Knowing the basics would guide you and make the process a little easier, and (when done smoothly) less stressful.
