Dos and Don’ts For First Time Home Buyers
March 18, 2021
So you’re thinking about buying your first home. Congratulations! This is an exciting time, but it’s also a time when you need to be careful. There are a lot of things to think about when buying a home, and if you’re not careful, you could end up making some costly mistakes. To help you out, we’ve put together a list of the 5 dos and the 5 don’ts of buying your first home.
5 Dos For a First-Time Home Buyer
Buying your first home can be an exciting and intimidating experience. As a first-time home buyer, it’s important to know the dos of the home buying process.
1. DO Your Research
One of the most important things you can do when buying a home is to do your research. You need to know what you can afford, what kind of home you want, and what kind of neighborhood you want to live in. You also need to research the different types of mortgages available to find one that best suits your needs. The last thing you want to do is jump into something without knowing all the facts.
2. DO Create a Budget.
After exploring your options, create a budget to identify how much you can feasibly spend on a home. When forming a financial plan, remember to include all of the costs associated with buying a house like the down payment, closing costs, and all other fees.
3. DO Shop For a Mortgage Lender
For first-time home buyers, shopping around for a mortgage is of the utmost importance. Unfortunately, research has shown that just 13% of home buyers actually shop around for the best deal, leaving them open to missing out on potentially better terms and conditions, or a lower interest rate. It pays to compare mortgages and assess what’s best for your current financial situation, so make sure you do your due diligence and take the time to compare your options.
4. Do Hire a Real Estate Agent
Hiring a real estate agent when you are a first time home buyer is almost essential for a smooth transaction. A real estate agent will have knowledge of the current market and be able to help guide you through the entire home buying process.
They know the ins and outs of the local market, so they can help you find the perfect home for you and your family. Agents can also help you negotiate the best possible price for the home.
5. DO Get a Home Inspection
A lot of people make the mistake of skipping the home inspection because they don’t want to spend the money or they trust their real estate agent’s opinion. However, a home inspection is crucial because it will give you an unbiased opinion about the condition of the property. If any major repairs need to be made, you’ll know about them before signing on the dotted line which can save you thousands of dollars.
5 Don’ts For a First Time Home Buyer
It’s all too easy to get caught up in the excitement of buying your first home, but there are some dos and don’ts that you should be aware of. Here are 5 don’ts for first-time home buyers.
1. DON’T Be Afraid to Walk Away
At the end of the day, buying a home is a big decision, and it’s one that should be made with your head AND your heart. Just because you’ve found a home that you like doesn’t mean that you have to buy it. If the seller isn’t willing to negotiate on price or repair some of the issues that were uncovered during the inspection process, don’t hesitate to walk away from the deal. Remember, there are other homes out there!
2. Don’t Forget To Check The Neighborhood.
Before committing to a home, it is essential to learn about the neighborhood and make sure that it suits your needs. There are a lot of factors to consider when looking at a neighborhood such as safety, schools, amenities, noise levels and more. Make sure you take some time to do research on the neighborhoods that you are considering buying in before making a purchase.
3. Don’t Be in a Rush
It is easy to be enticed by the first property you come across, however, it’s essential that you take your time and explore all of your options before making a decision. Don’t settle for anything less than what meets all of your needs – after all, this is one of the biggest investments in life. Spend plenty of time researching so that when it comes down to selecting a home, you are confident knowing it was the right choice for you.
4. Don’t Forget To Get Pre-Approved
When you take the plunge into homeownership, showing pre-approval from a lender can mean all the difference. Showing sellers that your offer is backed by solid credit credentials not only increases their confidence in accepting it – but could be paramount to getting them on board for an agreement.
5. DON’T Feel a Need To Make a 20% Downpayment
As a first-time home buyer, you may have heard the myth that you need to make a 20% down payment when purchasing a house. Fortunately, this isn’t the case and the National Association of Realtors reported that in 2021, the average down payment for a first-time home buyer was 7 percent. There are also many loan options available with lower down payment requirements such as FHA, VA, and USDA loans.
All the best!