6 Tips for First-Time Homebuyers

 

While buying a house is exciting, the reality can be overwhelming. You are new to the market and don't know where or how to start. 

With these tips, you'll be ready for whatever is coming your way as you search for your next home.

Be realistic about your budget

As a first-time buyer, you don't want to get caught up in the fantasy that you can buy your dream home at any price. You'll probably have better luck if you stick with your budget and keep an eye on your finances as you move forward.

Build your credit report

Building your credit report is the first step to getting a mortgage loan. You need to make your credit history so lenders can see that you are a responsible borrower and have the ability to repay a loan.

Get pre-approved for a mortgage before you start looking at homes

The first thing you'll need to do is get pre-approved for a mortgage. Your lender will want to prove that you have enough income and credit to afford the monthly payments on your mortgage and other expenses like property taxes and homeowner's insurance.

Save up a down payment of at least 20 percent of the purchase price of the home

If you are a first-time home buyer, saving up to 20 percent of the purchase price is essential. If you have $100,000 to put toward a down payment, you should have at least $20,000 in savings.

Hire a good real estate agent

Hiring a good real estate agent is crucial to buying your first home. A good agent will be able to find you the perfect home and negotiate on your behalf so that you get the best deal possible.

Look at homes off-season

Looking for a home in the off-season gives you a chance to find a house that fits your budget, needs, and preferences will be higher. You don't have to worry about the competition and have time to look at homes that may not be on the market during the peak season.