Buying your first home is frightening! It is the biggest purchase you will have made up to this point in your life. It is a big financial and time commitment-you will have to clean, do yard work, maintain your home inside and out, etc.
Paying rent every month isn’t fun, either. You pay out every month and get little in return. When faced with the question, “would you rather throw your money away each month or use that money to build equity?” what would you answer? Sounds like an easy answer to me.
Buying your first home is huge. It is scary, nerve wracking and stressful, but most of all, it is EXCITING! There are many things a first time buyer should be aware of in order to make the home buying journey a little less stressful.
- Start with a plan. Make lists of your wants and needs.
- Obtain a pre-approval on a loan. This is an important first step. Obtaining a pre-approval will help you set your price point which in turn will help you with your home budget. However, this is an amount based on unverified documents. More about the loan process to come.
- Set your budget. There are many additional costs that go along with a home purchase. Be aware that you will have to pay taxes, insurance, maintain inside and out of the home. It is also a good idea to set an emergency fund as a just in case.
- Find your perfect real estate agent. This is super important. You will be in a relationship with your agent and you need to not only trust him or her, but also be supportive with your decisions. Not all agents are alike just like not all buyers are alike and there is nothing wrong with interviewing a couple agents. Find an agent who fits your personality.
- Location, location, location. This a bit of a repeat of starting with a plan but location is very important. Before you start looking you should decide on the location. Take into account school districts, commute, close to shopping, anything that interests you.
- Pre-Approval is also very important. This is different than pre-qualification. Pre-approval is the guarantee that the lender will lend a fixed money amount. Pre-approval helps ease the worry of how much you can truly and comfortably afford. You now have a set price point to start your search.
- Look beyond the staging in the homes that you are viewing. Imagine yourself in the home and your vision on how to make it your own.
- Not all offers are accepted and that is okay. Remember, just because you put in an offer, it isn’t an automatic. It is always a good idea to include a personal letter to the seller and a picture of you and your family.
- Once your offer is accepted, have your own inspections done on the home.
- Take your time! It is one of the most important decisions you will make and you do not want to rush into anything. Be confident in your choice.
Hope these tips help with your first time home purchase. Good luck and enjoy!
Kerry Smith-Buyers Agent Myrick Estates Team