It can be intimidating to buy a house for the first time. However, you and your family are ready to make the investment.
There are a lot of things to consider when purchasing a home. Location, size, and cost are only some of the things you'll need narrow down. Plus, there are other people looking to buy a home similar to the one you want.
In fact, over 5.5 million homes were sold throughout the United States in the year 2017 alone. Make sure you find the best one to suit your family before someone else takes it off the market.
It can be challenging to succeed as a first time home buyer, so it's smart to do some research ahead of time. The good news is that you've come to the right place by reading this article. Detailed below are nine tips to remember when buying your first home
Consider What You Really Need in Your First Home
When you first start looking at options for your new home, you might get a bit overwhelmed. There are a lot of options out there, no matter what area you are targeting. That's why you need to first start narrowing down what you're looking for in a home.
First and foremost, what size of a house do you think you'll need? You and your family deserve to have plenty of space, but don't get too excited. The smaller the home is, the more affordable it will be in the long run.
Second, don't forget to consider the location. Choosing a city is only one part of this decision. Different neighborhoods can have different effects on growing families, so choose wisely.
Start Saving in Advance
The most important thing for you to consider when buying your first home is money. Buying a home is an investment, and you want to make sure such a risk will be worth your while.
That means that the more money you have available, the stronger your investment will be. Make sure you save as much money as possible for a long time before even considering where you want to move. You won't regret having large savings through this process.
Only Work with the Best Real Estate Agent
Even though this is the first home you're buying, you're not alone. Statistics show that up to 35% of all home purchases are for a first time home buyer. Almost everyone needs help navigating the ins and outs of the real estate market.
Don't forget that there are professionals able to optimize this buying process for you. Real estate agents are trained and happy to assist you every step of the way.
You don't want to get taken advantage of, though. Be sure to only work with the most trustworthy real estate agents available. Check out this article on guidance for choosing the best agent for your family.
Consider All Mortgage Options
Not all mortgages are equal, by the way. You want to make sure you set yourself up for success in paying off the mortgage. Don't sign the first mortgage that comes your way.
Some conventional mortgages require only 3% of a down payment. That is certainly not a standard across the board, though. It's a good idea to show around on rates and options to ensure you're making the best deal for you and your family.
Determine Your Budget, and Stick To It
The real estate market is looking to do one thing: profit. People are trying to sell you their homes, so no sales tactics are off the table.
One thing that first time home buyers make the mistake of has to do with budgeting. They tend to get excited and commit to paying more than they were planning to. Don't make this mistake, and stick to the price tag you know you can afford no matter what.
Compare, Compare, Compare!
Once you find a neighborhood you're interested in, and once you're settled on the price range you can afford, it's time to shop around. This is the fun part of buying a home.
Never buy the first home you come into contact with. Do your best to give yourself plenty of options to choose from.
To narrow down your various choices, imagine what it would be like to have moved into each home. What kind of living spaces are in each potential house? How big are the yards?
Don't be hesitant to take your time when picking out your first home. This process deserves your full attention, even if that means it takes time. You don't want to settle on an option that doesn't fulfill all of the living expectations you set out in advance.
Make the Most of Open Houses
As mentioned above, you'll want to take as much time as you need to find the best new home for you and your family. One way to optimize these comparisons is by attending open houses.
Going to an open house can really help you determine whether or not your family would do well in that home's space. Maybe you find that you don't like the lighting as much as you did. Use open houses to your advantage.
Don't Be Afraid To Negotiate Price
When it's time to settle on a price, a lot of first time home buyers forget to negotiate. This can be a profitable part of the buying process, so don't neglect it.
You'll see the asking price publicly displayed. Ask, though, if the owner will accept a reduced amount. If they are having trouble selling the property, you might get a nice discount.
Do More Research As a First Time Home Buyer
At the end of the day, there's still a lot you can learn as a first time home buyer. We know how important it is to stay as informed as possible throughout the process, so we're here to help you. We encourage you to check out the rest of our blog to ensure you know exactly how to succeed when buying your first home.