What You Need to Know Being a First Time Home Buyer

FIRSTHOME

Buying a home may seem like a difficult and long process but there are many steps that you can take to make it easier. The market we are currently in can make the process seem like it’s going to take a while or that it is going to be impossible but with the steps you can take and having a great real estate agent, you will soon be in your next home.

Home prices continue to rise as we move along through the summer which may scare new home buyers into waiting longer. Although home prices are increasing, rent is also increasing so buying a home may save you more money in the long run. Monthly mortgage payments are on the rise but comparing mortgage payments to rental payments, paying for mortgage is still significantly lower than rental payments, according to the National Association of Realtors.

With prices on the rise, determine a budget for yourself and/or if you are buying a house with someone else. Determining and sticking to a budget will allow you to know what you comfortably can afford but if you must go over that budget in a bidding war, it may not be the best thing for you. You may want the house that you are in a bidding war for but if it well exceeds your budget, it may not be the right home. Create a budget where you can possibly exceed by a little bit but not too much.

Think about if you are ready to commit to a loan. Mortgage loans are typically 15 to 30 years so ask yourself if you are ready to commit to this home for a while and if you have the money to do so.

If you are ready to commit to a loan, do your research and find the right type of loan for your situation. There are many types of loans to choose from that range in various forms of how little or how much your down payment can be which may help your financial situation.

Getting pre-approved for a mortgage loan is a major step that you do not want to miss. This major step lets you know just how much you can afford and shows the seller that you can afford to buy their home.

This step may be a very vital part in getting a home. If there are multiple offers on a house, getting pre-approved may make you more desirable to the seller and you may not have to be in a bidding war.

All while in the process of this, make sure you are keeping your credit stable, and you are not draining your bank account. When buying a home, you want to make sure you keep your spending on the low to show that you are responsible with your money.

Also, be sure to scout out the neighborhood at different times of the day to make sure that the community is the right fit for you.

Buying your first home may seem like a stressful and daunting task but with the right help from the right real estate agent, you will find the next home for you!