5 Tips for Buying Your First Home
There’s very few things that will cost you more than your home. And if you’re considering them, your home probably costs even more than those.
When buying a home, you need to be considerate of a lot of factors; not simply factors toward cost, but factors toward future value and comfort. It’s very hard to find the perfect home, and you may feel tempted to make some concessions in order to do that. Well, here’s 5 tips so that you make the right decision come signing time.
1. Be realistic about how much you can spend
We all want to believe we can afford a million dollar home, and with the right mortgage and down payment, certainly you can, but it takes a lot of planning and saving. There are a lot of rules surrounding the size of down payments in relation to the cost of the home, mortgage insurance, the interest rate and other fees you may not be considering. And don’t forget, after all is said and done, you have to make that mortgage payment every month.
Make sure you’re honest with yourself about how much you can or are willing to spend. Once you calculate your home along with interest, you’ll see the sticker price can’t be quite as high as you thought. And don’t forget about closing costs. They will sneak up on you if you don’t put aside for them. Reach out to us for more details if you’re not sure about any of these costs.
2. Clean up your credit score
No matter what you think you can spend, you’re going to run into resistance with the bank if they don’t find you suitable for a loan. A mortgage is just that - a loan that you promise to repay over a decade spanning period, so they want to be sure they’re making a rock solid investment. This means you need to get your credit score up, by knocking off old debt or unpaid credit cards.
Don’t allow your mistakes to haunt you well into your future - an outstanding debt can be the difference between a future home and another year of waiting. Or worse, it could be the difference between the house you always wanted and the one you settled for. Nobody wants to settle when they’re spending this much.
3. Get pre-approved
Getting pre-approved means you’ve gotten realistic and you went to a bank to verify it. This does two things for you: It means you know exactly how much you’re able to spend when you get to shopping, and it means you’ll be able to pull the trigger much faster when we happen across the perfect home.
The last thing you want to happen once you’ve found the right home is to have to go to a bank and wait on some arduous paper work, while your home gets offers on offers from other potential buyers. Avoid this downtime at all costs.
4. Think long term
Maybe you have kids on the way - or maybe you plan to sell the home. Whichever the case, you have to know that it’s going to be some time before you’re out of the house (or maybe not, depends on your plan). In any case, you have to think about this purchase and how it’ll affect your future. From multiple bedrooms to schools nearby, highly coveted neighborhood and nearby parks, there’s a lot to consider. What makes one home suitable as an investment may not make it suitable for your family. So be considerate here - do you plan on staying a long time? Do you plan on growing? Do you plan on buying someplace new once you do? Or do you plan on buying the real home, after you’ve flipped a few properties?
5. Get a buyer’s agent
I know, shameless plug. But you’ve just read a lot, and being frank, it was only skimming the top. There’s a lot you need to think about in terms of the home itself, that trying to juggle that along with paperwork fees, and your own busy schedule, is going to be a world class headache. Buyer’s agents are trained, specialized, and motivated to get you into the right home. And they don’t cost a dime. My experience in finding homes stems from an investment background, so I’ve learned very well what makes it a home suitable, and what it’s really going to cost.
Put the worry and work into the hands of a professional, and you can focus on saying yes when we find the perfect home for you.