Buying your first home can be exhilarating, stressful, and overwhelming all at the same time. Even though it is a positive event and significant milestone, it is also a huge financial investment and commitment.
Fortunately, there are steps you can take to get through the process unscathed. Here are five essential first time home buyer tips to help you mitigate stress and make happy memories.
Make Sure Everyone is Aligned
If you’re buying a home with someone else, you need to make sure that you are on the same page. Outline what you are looking for, the location, what you are and are not willing to concede on, etc.
If you are buying a house by yourself, you may think that the conversation isn’t necessary. On the contrary, take some time to figuratively talk to yourself and get a clear definition of what you are looking for in a house. Having these ideas written on paper can help you make a decision if the different options start to overwhelm you.
Speak with a Financial Advisor
Before starting the home buying process, discuss the matter with your financial advisor. They may be able to highlight any potential pitfalls surrounding your current financial situation that may cause you to reconsider purchasing until something changes. On a positive note, they may be able to share with you some tax credits and savings options for first time home buyers of which you wouldn’t otherwise be aware.
By speaking with a financial advisor before starting the process, you ensure that you follow the right steps to be eligible for the various perks available. It would be exceptionally frustrating to discover that you could have saved thousands of dollars but missed the opportunity.
Work with a Real Estate Agent
Even if you know exactly what you’re looking for, it’s best practice to work with a real estate agent of your own. A buyer’s agent is someone who will advocate on your behalf to find the home that suits your needs. Without one, you will be dealing with numerous real estate agents whose main priorities surround selling their client’s home. A buyer’s agent can act as a liaison and answer any questions you might have throughout the process.
If you’re hesitant to hire a buyer’s agent based on cost, worry not! They receive a percentage of the commission from the seller– though you should always read the fine print.
Get Pre-Approved
Getting pre-approved for a mortgage will save you headaches and strife as the buying process goes on. Not only does it cut some of the time implications once you find a place, but it will also tighten the parameters of your search. Rather than wasting time looking at something that is outside of your budget, you need to only visit the places that fall within the limits of your pre-approval.
To get pre-approved, you can work with a mortgage broker or a bank. Many first time buyers opt for an FHA loan rather than a traditional mortgage, as it requires a lower down payment and has different financing options.
Hire a Home Inspector
When you make an offer, make it contingent on a professional home inspection. Spending a couple hundred dollars on an inspection is worth it rather than finding out the septic tank is rotten and needs $20,000 worth of work.
Unfortunately, there are plenty of housing issues that aren’t visible to the naked eye. A home inspector knows what to look for in the foundation, attic, walls, and floors to determine if the house is worth your while or if you should be negotiating your offer.
Remember to consult with the finance and real estate experts when buying your first home– or any subsequent homes you purchase– and the process will be significantly less challenging than if you go it alone.
