Tips and Guide for First-Time Homebuyers

The path towards homeownership can be overwhelmingly challenging – even more for first-time homebuyers. It’s a long complicated process involving a long list of steps and requirements, which if not followed properly may cost you time and money. That is why proper budgeting and a well-planned checklist are essential for this expensive and emotionally charged purchase. 

To help you, here is a  guide and some tips that you need to keep in mind before you make that big purchase.

Planning the Purchase

The primary questions to be answered before buying a house are: How much can I afford? What kind of home do I want and need? 

Knowing your financial capability is probably the most important thing to consider when planning to purchase a property. Review your savings and spending, and know how much mortgage you qualify for.  This way, you can limit your needs to a relative price range that still leaves you with disposable income for emergencies, vacations, and more.

When purchasing a home, it is also important to know the size, features, systems, and overall condition of the house that match your needs. Once these are all figured out, it will now be smooth sailing from here on out. 

After establishing your needs, you can now jump into your wants. This will vary based on designs, added features, home style, or anything that you don’t actually need like the interior's color palette, a fireplace, a pool, etc. But this should only come into play after your needs have been identified. 

Starting the Purchase

Hire a professional to guide you through the buying process. You might think that buying homes by yourself will save you from paying commission charges. That’s true, but chances are, due to the confusing process, you might be missing some key details in your transaction which could lead to expensive mistakes. 

Real estate agents bring expertise and help you negotiate a better deal. Having them throughout the transaction process increases the chances of getting the house you desire with the best offer, not to mention the time and effort you will be saving for yourself. 

The Purchase

Now that your plans are laid out, it’s time to take the plunge. First thing is to shop for a mortgage. Take time to search around for a lender. Surprisingly, loan fees vary depending on the type of lending company. You need to know how much you can afford upfront.

Next is to find the dream home. Real estate agents have unlimited access to multiple listing services (MLS) which in just a few clicks will present you with the homes that best suit you. 

After securing a pre-approval and working with your agent to find the right home for you, you now move to the offer. This will now be a discussion between you and your agent who will help you decide how much you want to offer for the property along with other stipulations. Check your budget one last time before submitting the offer. 

Negotiate with the seller. Sellers may be willing to shoulder the repair costs in advance or may agree to lower the selling price to cover future repairs to the property. But this will depend on the current market situation. The more potential buyers in the market, the harder it is to strike a hard bargain. 

Overcoming the challenges of buying a home is all about getting the details right from start to finish. With careful research and determination, the keys to your dream home will be at your hands in a less daunting process. Now, the question is, are you ready to buy a home?