Buying your first home can be an intimidating task. But, you won’t be alone. First-time buyers make up 35% of all home buyers.
We know it’s scary. But we’re here to help you through the process.
In this article, we’ll go over the basics of home buying 101. With these three tips, you’ll be ready to start your search. So read on and get ready to become a homeowner.
Save More Money Than You Think You’ll Need
You’re probably already saving for your down payment. And that’s going to be a hefty sum.
Ideally, your down payment will be 20% of the value of your home. It’s true that first-time home-buyers can get away with putting down as little as 3%. But 3% of $200,000 is still $6,000.
Play around with a down payment calculator to get a better idea of how much money you’ll need.
You’ll also have to pay for mortgage insurance, especially if you have a small down payment. You’ll have to pay for closing fees and other legal fees. And then once you live in the house, you’ll have to your monthly mortgage, utilities, and homeowners’ insurance.
These costs will add up quicker than you expect. So, save more money than you think you’ll need. And remember, buying a new home is expensive; you shouldn’t do it unless you’re financially ready.
A new house is an investment. And if you talk to a reputable real estate company like Royal Hills Property Solutions, you’ll make your money back when you sell.
Find a Good Buyer’s Agent
You shouldn’t buy a new home by yourself, especially not your first home. A good buyer’s agent is indispensable to the home-buying process.
They’ll help you find the right home for you. They’ll guide you through all the legal process. And they’ll help you negotiate the best possible price for your new home.
You won’t even have to pay your agent. In most cases, the seller will pay their salary as part of the final contract.
Find the Right Home for You
You’re going to be living in your new home for decades to come, so make sure you find the right one. Start by working with your agent to decide on a well-defined budget.
Once you have your budget, start shopping. Take your time. You should expect it to take a few months to find the perfect house.
Buy a home that you’re going to be happy with for decades. If you’re planning to have kids, make sure the house has a few extra rooms. If you’re hoping to plant a garden, make sure it has a big, flat backyard.
Choose a house with high-quality materials. At first glance, everything might look sturdy, but will it be able to withstand year after year of wind and weather? You don’t want to be paying maintenance bills on top of your mortgage every month.
That’s Home Buying 101
Now that you have home buying 101 under your belt, it’s time to start the process.
It’s a big step, so take your time and keep researching. If you have any questions, our forums are a great place to start.
If you found this article helpful, you can find much more home-buying info on our blog.