Buying your first home is one of the most important and biggest purchases that you will make in your life. Therefore, you should formulate an approach before looking for and purchasing a new home. Working with a real estate agent is recommended; however, there are some tips and tricks about the home buying process that your agent may not share with you. Prepare yourself for a successful home buying experience with these insider first time homebuyer tips and secrets!
For Before You Start Your Search for a New Home
- Check your credit score at least 6 months in advance of your home search. Examine it closely and resolve any errors or make outstanding payments to raise your credit score. Your mortgage approval and rate greatly depends on your credit score, and repairing a few small items can save you thousands of dollars in interest over the life of your payments.
- Save up cash for your down payment and up front closing costs – you’ll need it. You should also set aside money for moving expenses, home improvements, taxes and items you may need after the move to furnish your new home.
- Prepare a budget to help you to understand where you can cut spending and shift those funds to a specific mortgage or home savings account. Analyze your monthly costs realistically to evaluate what you can actually afford for a mortgage payment without stretching yourself too thin.
For Getting Started in Your Home Search
- Two of the most important pieces in the search for a home as a first time homebuyer are to find an agent and a mortgage lender that you trust, that listen to all your questions and that have the answers for you. Your real estate agent should always be available to you and should help you find the right home for your budget and needs. Your mortgage lender should help you evaluate your finances to help you get approved for a mortgage that is right for your budget.
- Your agent works for you, but only is paid after your purchase of a home. Don't let an agent rush you in your buying process or try to push you into a certain home if you are not comfortable with it.
- Try not to fall in love with a home for only one reason, such as the location being convenient or a great school system for your children. Maybe one home has a large, beautiful recreation room that you really like; however, keep your original goals in mind and stick to them, as it is easy to get distracted.
- No offer is too low. If a property has been on the market for a long time, submit an offer on it. This gives you and the buyer a price point to start your negotiations on. The worst that can happen is the homeowner doesn't accept your offer, and they may turn around and give you a counter offer to think on.
Preparation and education are extremely important for first time homebuyers, and will help set you up for success! Keep these tips and insider secrets in mind when starting the home buying process; and if you’re interested in more valuable homebuyer information, download our eBook now!