Everything You Need to Know When Buying a House for the First Time

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Jun 23, 2021 Homebuyer blog

Everything You Need to Know When Buying a House for the First Time | Reach Home Loans

First-time homebuyers are eager to land their dream home as soon as they can, which is not surprising because owning a home is an exciting prospect. Since investing in a new house involves a lot of money, you need to think things through. Giving your mind enough time to weigh things will help you make the right decision with your house-hunting venture.

Of course, before you buy a house, there are a few things that you need to consider. You will have to factor in your finances, mortgage, and the property itself. If you want to know how to make your house buying a flawless experience, read on.

First Time Home Buyer Guide

Understandably, you will feel overwhelmed at first. It is normal because there are plenty of requirements for buying a house. This is true when it comes to applying for your first-time home buyer mortgage. Don’t worry because everything you need to know when buying a house for the first time is here. Let’s get started!

  •   Is it the right time to buy?

Buying a home is only done when you are ready for it, not because your friends are buying one. Even if your relatives are saying that you are wasting money on renting, stick to your guns. Only purchase when you are ready to commit as a homeowner. It is also a good idea to push through with your plans only when your finances are ready.

  •   Consider your finances

Buying your first home will involve a lot of money. You can pay in cash if you have the means or apply for a mortgage. Getting a first-time home buyer loan is not that easy. You have to show your credit score is high enough first. You also have to show proof of income and other supporting documents.

  •   Save for down payment

Even if you haven’t applied for a mortgage, you still need to start saving. This is in preparation for the down payment on your new home. Most realtors will recommend that you pay at least a 20% down payment to get a good interest rate. Always weigh the pros and cons of this move first. If you want to know what’s the best amount to pay for your down payment, read more here.

  •   Shop for a mortgage

There are different types of mortgages that you can check as a first-time homebuyer. You can look into a first-time home buyer mortgage as this is where lenders offer lower interest rates. They can also come with tax credits, so don’t forget to compare mortgage rates and fees.

  •   Go house hunting

House hunting can start once you have been pre-approved. Knowing how much you can borrow can make it easier for you to set your budget when shopping for a home. This is important since going through the real estate market can be overwhelming.

  •   Talk to a realtor

Another factor to consider when buying your first home is to talk to a realtor. Your realtor will be the one to look for properties that fit your budget and your preferences. This way, you can save precious time. Ask your close friends if they can recommend a realtor or you do your research. It is important to find someone who will have your interests at heart.

  •   Close the sale

Once you have decided on a home, you should choose which mortgage lender to work with. This means going through the approval process, which can take a few weeks. The lender will go through your finances and check the property you’re going to buy too. You can sign the dotted line on the contract once you agree with its contents.

Suggested Tips for First Time Home Buyers | Reach Home Loans

Suggested Tips for First Time Home Buyers

There are other factors that you need to consider aside from the buying guide above. You also need to look into the following:

  •   Pay for a home inspection

Call for a home inspection on the property before you close the deal.  This can help you avoid any extra expenses down the road. A home inspector will check the integrity of the home and call out any issues that they find. You can discuss the repairs with the homeowner if you want to continue with the sale. If not, you can also look for another property instead.

  •   Consider the neighborhood

It is easy to fall in love with a house the first time you see it. Keep in mind that there is more to buying a house than the property itself. You need to consider the neighborhood too. Check out the location of the house and how far it is from the school, business centers, and others. You need to consider if you will be living here long term or not.

  •   Set aside money for home improvements

Don’t spend all your money on buying your new home. You should also save some for your home improvement needs. Having extra money can make it easier for you to fix any problems as soon as you spot them and can also help you make improvements to your space without applying for a new loan.

Make Your Home Shopping a Breeze

Making the leap to becoming a homeowner is exciting and scary at the same time. However, you don’t have to worry about your finances because Reach Home Loans is here to help. You can find the right mortgage loan based on your current finances with our experts.

Let us help you get your first home without a hitch. Call us at 954-703-1465 for inquiries. Fill out the form at https://www.reachhomeloans.com/contact-us/ for help.

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