6 Steps for First-Time Home Buyers
The process of buying a home is complicated, there is no denying that. However, first-time home buyers can be prepared for this extensive process. There are going to be many frustrating parts to making a purchase but being knowing up front what will be required can help to minimize these moments.
First-time home buyers will want to think about the entire process and not focus just on the home.
It Is a Waiting Game
Buying a house involves a lot of waiting. There are many moving components to making a purchase and each one can mean another day or even week of waiting. Looking at houses and talking to a real estate agent is only one part of buying a house.
Obtaining a mortgage is one of the more time-consuming aspects of buying a house for first-time home buyers. Once the perfect house is found an inspection is needed. There will be some haggling and deliberation time as well. Most home purchases last at least a month and even up to three depending on how quickly each player gets their part done.
Choosing an Area
A wonderful house is only as good as the neighborhood around it. Many home buyers are willing to sacrifice their neighborhood to get an extra bedroom or to find a house that has a two stall garage. While this works for some, it is important to take the neighborhood into consideration.
Look into the school system. Even without any children, houses that are in the range of a good school system will be worth more.
Drive time from work and other amenities is also important. One area that is very important to look into is the overall safety of the neighborhood.
Collect Paperwork
The mortgage lender is going to need a lot of paperwork to approve the mortgage. Items like pay stubs and bank statements will help to prove income. Any debts will need to be documented as well. Past tax statements are important and at least the last two years will be needed. It is always good to keep an extra copy of these documents digitally or with a paper copy.
What is Important?
There are features of a house or neighborhood that are necessary for home buyers. And all home buyers have a different idea of what is needed in their home.
Make a list of what are needs and what are desires. Not every house is going to fit these criteria. It is important to know what items can be compromised and which ones must be found.
Finances
It goes without saying that a house is a huge financial decision. Still, many first-time home buyers buy too far above their means to get a house that they love. Making a house purchase that is too far above the budget can mean disaster down the road. As the months and years go by, finances may become more and more strained.
Choose a Good Lender
Too many buyers think that every lender is the same. This is far from the truth. Shopping around can help home buyers get a great interest rate and save a lot of money. Visit at least three different lenders to see how each one differs before making a decision.
There is a lot involved with making a home purchase. Home buyers must think about their finances, what is needed in a home, where the home should be located and determine how they are going to finance the purchase. Simple planning can go a long way to make this process smooth and easy.