I'm excited to introduce Amy Griffin as the guest blogger of
this post. Amy is the creator of a site that helps readers learn how and where
to hear a master's degree. She is also a guest author who enjoys writing about
small business tips, finance, and educational options
So you’ve decided to buy your first home. That’s great!
Congratulations! But now what? Are you really prepared to make this huge leap?
The thought of a yard to yourself or a white picket fence may be making this
decision sound like a good one, but you also need to consider a few other
factors if you don’t want to find yourself in a financial mess. Buying a house
isn’t just another impulse buy like that new shirt or a pack of gum at a store.
It is a decision that will affect the rest of your life, so you need to
cautious. These are a few tips you should take into consideration when you are
buying your first house. If you follow them, you may be able to avoid making a
huge mistake.
- Check your credit report – When you need to get a mortgage for your home, any lender you go to will look at your credit score to determine your mortgage qualifications. If your credit report is less than satisfactory, you should take a few months to improve it before you decide to look into buying a home.
- Figure out what you can afford – You don’t want to get your heart set on a beautiful home that you can’t afford. Before you even look at a house, you need to sit down and crunch the numbers. Figure out a monthly budget and find out exactly where your money is going. When you know that, you will be able to figure out how much you will be able to put towards your mortgage and other home expenses each month. If you can’t find a way to make it work, you may have to change your spending habits or find a new source of income before you start your house search.
- Determine what you need and what you want – Your first home isn’t necessarily the home you will be living in for the rest of your life, so it doesn’t have to be perfect. There are a lot of things you may want in a dream home (like five bedrooms or a backyard pool), but you don’t necessarily need those things now. Your first home isn’t necessarily going to be your dream home, but it should still have all of the things you need.
- Find a good real estate agent – This person is going to be there for you through this whole process, so you need to find someone who you can trust. Interview a lot of agents and ask lots of questions to find out their past experience and the types of homes they specialize in.
- Look into your mortgage options and get preapproved for a loan – Unless you are able to pay for your first home in full, you will need to know your mortgage options. A mortgage is basically a loan that is backed up with some form of collateral. With the mortgage on your home, the bank will have the right to take your home if you aren’t able to make your payments. If you plan on keeping this home for 30 years or more, you may want to consider a 30-year , fixed-rate mortgage, but if you are just getting a starter home, then you may want a mortgage with an adjustable rate. From there, you need to choose a bank and find the best loan agreement for you.
- Understand the offer process – Once you find your home, you will need to know how to make an offer. Your real estate agent can help you learn this process, but you should also do some research of your own.
- Get a home inspection – This may be the most important step of them all. You don’t want to buy a house and move in only to find out that it is infested with termites. A home inspection will not only let you know of any potential pests, but it will also bring to light other possible problems with any home before you sign on the dotted line.
- Read before you sign – As with any contract, it is essential that you read through and understand every word before you sign anything. You may even want to consider hiring a lawyer to read through your contract to make sure you don’t get trapped in an agreement you don’t approve of.
Borrowers with higher credit scores can get a mortgage at a much favorable rate and term than those with poor rating. Such variations can potentially save you thousands of dollars over the full term of your loan. Besides, it's getting harder for potential home buyers to get a loan nowadays if you don’t have a strong credit score.
ReplyDeleteHi, I am very much inspired with this article because this is really helping. When buying a house there's a lot of things to consider so that you didn't failed after. I am thankful I visit your blog because here in Philippines there's a lot of house for sale and I have plan to buy, I can use those tips here so that my plan will be successful. Thanks.
ReplyDeleteI was very pleased to find this web-site. I wanted to thank you for your time that you put in and for this wonderful post.
ReplyDeleteNice read! I really like the tips mentioned above. As security is one of the major concerns while purchasing anew house so it should not be neglected at any cost. It is essential to purchase a house in a reliable and secure neighborhood. People often neglect security aspects while purchasing a new house, but it is the prior thing that should be kept in mind.
ReplyDelete