5 Tips for All First-Time Home Buyers

Though buying a home is perhaps one of the biggest steps a person may take in his or her lifetime, sometimes it seems as if the majority of homebuyers don’t place an adequate amount of time into making the process as smooth and efficient as possible. 

Why would that be? Probably because often times purchasing property is one of the most daunting tasks a person can experience in their life. Many potential buyers usually find themselves overwhelmed by the state of the market or the process of buying and decide to rent or figure out a different alternative.

However, it doesn’t have to be that way. Prices of homes and the supply of houses for sale, even in affluent and beautiful beachside towns, are now in positions where they can be once-in-a-lifetime opportunities for first-time buyers, making the opportunity to discover an affordable dream house much more realistic.

Here is a list of five tips for the first-time homebuyer. Things that can be kept in mind for the young and inexperienced buyer in order to make buying a home an easier experience and less-stressful.

1. Find out your budget

Home buyersThe first time homebuyer should really figure out how much money can be spent on a home-purchase. Showing up at open houses and falling in love can be easy but it’s best not to waste time looking at homes out of someone’s price range.

Banks will tell a would-be buyer that they can spend up to 28% of their gross monthly income on their mortgage, taxes, and insurance and up to 36 percent on their total debt. If debt is an issue, a first time home-buyer should find a service like NationalDebtRelief.com, so debt isn’t a factor in not finding the appropriate home. This isn’t accounting for home loans that can be taken out, as well.

By calculating a property budget and taking into account all of the monthly payments that apply PRIOR to even seriously considering a purchase, one can commit to a comfortable mortgage amount.

After this point, one can get pre-approved for a mortgage by shopping around for lenders. Pre-approvals are good for around 60-90 days.

For more on mortgages and loans, one should read MSN Money’s article: “7 tips for first-time home buyers”.

2. Create a wish list

After figuring out a housing budget, the rookie homeowner should create a realistic wish list of areas they would like to reside in. By researching and checking out comfortably priced homes online, a realistic wish list can be generated.

3. Finding the proper real estate agent

homeBy finding a reputable real-estate agent in the area that the homeowner is looking to buy in, one can learn about the real-estate climate, find out if the area is the correct one to live in, and eventually find the right house. Realtor.com provides a fantastic list of proper things a first-time home buyer should ask out of their real estate agent. Through a real estate agent, one can find out about the amenities included in the home, the age of the home, and other conditions that are important to making a first time home purchase.

4. Finding a qualified home inspector

Just as important as a good real estate agent is a qualified home inspector. In fact, an excellent and thorough home inspector can save the new homeowner thousands of dollars by making the owner aware of any concerns or damage, saving the owner from making several expensive repairs in the future.

5. Get to know the neighborhood

Before settling on a house, one should get to know both the home and the neighborhood. By learning about the neighborhood (things like commute length, schools, shops, etc.) the first time home-owner can see if the area matches the house in terms of amenities and convenience.

Dave Landry Jr. is a financial consultant and business owner who takes great pride in his work as well as his blogging. He enjoys writing on anything relating to the aforementioned subjects, as well as politics, real estate and economics. He hopes you enjoy this article. 

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