Want to buy a house for the first time?
After you have considered the benefits of buying a home compared to renting one, you may think that you are ready to start buying your first home.
But before you jump in and become the first home buyer, be sure to follow these 8 tips: to determine if you’re really ready to buy a home.
These are the most important things you should do (and not do!) as a first home buyer …
8 Doing and not doing home buyers for the first time
# 1: Know what can be allowed.
Keep this figure in mind before you start looking at houses.
As a first home buyer, it took me two years to find and move homes before I really understood the market and chose a home that I liked and could afford.
Do your homework before you start looking and don’t expect more than you can afford. In fact, you should buy a mortgage before buying a home.
Depending on the current market, some banks may lend much more than you can afford, while others may not be willing to lend you as much money as you really need. Only you know what you could afford if times tighten.
For example, if you are married … you should base your loan amount on the salary of a single adult working from home, not both. That way, if one of you loses your job or your family falls through hard times, your house will be easier to pay for (… and keep).
# 2: Bring a camera and a laptop with home shopping.
The idea is to take photos of all the features you like about each house and write them in a notebook, along with the address of the house. Then download the images, save them in your notebook, and write down what you remember.
Without these tools, you couldn’t see more than 2 or 3 houses at a time without getting confused about which house had what.
When I bought my first house, I had to ask to see the same houses over and over again, just to keep them separate in mind. We now have digital technology … use it!
RELATED: How To Make An Ideabook For Your Dream Home
# 3: You have a significant down payment, but don’t borrow money to do so.
The higher your down payment, the lower your monthly payments and interest rate.
However, borrowing money (even from private sources) to make an down payment on your home can lead to a financial commitment that you will regret later.
Here it is Useful tips on down payments:
# 4: Don’t let anyone convince you to get a bigger house or a non-standard mortgage.
While most first-time home buyers will be able to afford a larger home in a few years, it’s probably best to wait later to buy the larger home.
Interest-only loans and armed loans that allow you to buy a larger home in anticipation of a higher salary will foreclose later than any other loan. Interest-only loans are neither magical nor smart.
# 5: Do not use a lender that your real estate agent has referred you to.
Also, do not use your real estate agent’s inspector, bank, or attorney.
When real estate agents, bankers and other home buying services work closely, it is rarely advantageous.
Setbacks and negative negotiations have done more harm to homeowners than structural problems.
Of course, there is a big difference between a casual referral and saying, “I want you to work with this banker.”
# 6: Inspect your new home.
There are horror stories all over the internet by people who skipped the inspection and lived regretting it.
- It doesn’t matter if the house is new or not.
- It doesn’t matter if it’s useful and you can probably fix any existing problem on your own or not.
- It doesn’t matter if the house you’re buying is owned by a bank and sold “as is” or not.
One more step, you don’t have to add too much to your new home until after the inspection. Because? Because you have to be willing to leave (or run!), If the inspector finds a serious problem with the house.
Don’t let your home attachment and its features make you overlook a serious (or expensive) problem.
RELATED: Everything you want to know about the home inspection process
# 7: Get private mortgage insurance (PMI).
PMI will not only cover the defects of the house and appliances, but will also cover your mortgage in case of death. (So that your spouse doesn’t lose the house in case he dies!)
Make sure both spouses are covered by mortgage insurance.
# 8 – Be patient … but also firm.
Yes, the closing dates will be moved and the banks will ask you for the same information over and over again.
Some of these things can be avoided by doing a little research in advance and keeping in close contact with all parties involved.
Changes are inevitable when buying a home. But at the same time … you can’t allow the bank, the home seller, the real estate agent, the inspector, or the lawyers to walk you everywhere.
Ever since I got pregnant with my first child, I’ve been certified as close and decided to find a way to stay home with him. I enjoy sharing my experiences on my journey to financial health and planning for the future, which will include sending two children to college and early retirement.