Purchasing your very own home is considered by many to be a significant milestone.
It is a massive achievement for many.
While it may be an exciting moment for you, you must stay clear of common first-time home-buying mistakes say the experts at Interest.
In this article, we have taken the liberty to outline nine steps that you will want to consider when you decide whether buying your first home is for you.
It can be a fascinating event to become your homeowner.
By following these easy steps below, you will make sure that the whole process will be as smooth and easy as possible.
Buying Your First Home? Make Sure You’re Financially Prepared With These Steps
Step 1: Make Sure You Are Ready To Purchase A House
Make sure that you are ready to purchase a house.
This may seem like a no-brainer, but you must consider this a long-term investment.
Think not only about the house you will purchase but also about the neighborhood you will be living in.
Know that you will also have to consider that you will have to pay house taxes and purchase house insurance.
Step 2: Start Shopping For a Loan
After deciding and becoming committed to purchasing your house, you will want to shop around for loans.
This is a very common practice for many people, so don’t fret over taking out a loan.
A few options you may want to consider is a mortgage broker or visiting a small local bank for a loan.
Step 3: Find The Best Payment/Loan Options
Look for a long-term loan.
Market Watch says many banks will offer you a 30-year loan, allowing you to pay small payments over the next few decades.
Step 4: Have Your Down Payment Ready
Paying around 20% for the down payment would be an excellent option.
You will want to do this because it may lower the amount you will be paying every month, and it will also put you in better relationships with private mortgage insurance (PMI).
If you can show that you are consistent with your payments and put a down payment that is much higher than they had asked for, you potentially help yourself out in the long term of owning the house.
House payments can be costly, but by paying more than you need to, you allow yourself to have a lower amount, making the mortgage payments much easier.
If you have low monthly mortgage payments, you can also pay many of the mortgage payments in advance, which will also help improve your credit score.
It does pay to PAY as much as you can in the beginning.
Step 5: Be Honest With Yourself About What You Can Afford
This will require that you are very aware of what you can afford.
It is not uncommon for some people to come across a particular house that has a hold on them because of its aesthetics.
However, purchasing or locking yourself into a house you cannot afford can damage your credit score if you cannot pay the mortgage on time.
So be very mindful of the house you are deciding to purchase.
Step 6: Find A Good Real Estate Agent
Once you have concluded that you will be purchasing the house of your dreams, you will want to find an expert real estate agent to help you buy the house.
There are many benefits to having a real estate agent on your side, says The Balance.
Once you have found your real estate agent, they will help guide you through all the paperwork.
Step 7: Get A Home Inspection
This is a significant step in buying your first home–or any home.
You will want to get an inspection of the house benefit you purchase.
It is not uncommon for some people to hide specific FAULTS about the house.
Having an inspection of the house can be very helpful for you.
Step 8: Be Patient During The Escrow Process
This process may be a bit more demanding of your time than you may want, but be patient as the whole process is there to PROTECT you (the buyer) from being victimized.
Step 9: Close and Then Move-In
Lastly, after you have gone through all the nonsense of purchasing your home, you can finally move in and turn this new house into a home.
If you have effectively found the right real estate agent, paid the appropriate amount in down payment, and had your inspection, you can now rest in your new home.
We hope these tips for buying your first home help you be more financially prepared to enjoy your new home!