Thinking of getting your first home is an exciting feeling. However, it could be a stressful journey financially, but if you do it right and follow the law, many are the pitfalls you will overcome. As the buyer, be ready for the long process of searching and viewing until you close on your property of choice. To help you get started, here are six crucial tips to consider when purchasing a house as a newbie.
6 Tips For New Homebuyers
1. Plan for What You Can Afford
Plan to buy according to your monthly earnings and other financial obligations. Talk with your bank to ascertain the debt you can comfortably service. If the Federal Housing Administration insures your mortgage, your total costs for housing should not be more than a third of your gross monthly income.
2. Be Aware Of Other Costs
Other costs kick in once you have bought the property. You will buy homeowners insurance and pay property taxes beyond the monthly mortgage payment. The house will undergo an inspection before you move in, helping you plan for the costs of repairs, such as for a foundation or a new roof.
You will pay monthly association fees if your new home is within a community with shared facilities. These expenses can be too high if you experience a financial setback. Consider these costs to avoid overburdening yourself by taking an expensive mortgage.
3. Do Your Research
Before making hasty decisions, read as much as possible about your location’s real estate market. Find out the area’s crime rates, price points, nearby schools, and other amenities. Keep in mind that, according to the National Association of Realtors, first-time homebuyers comprise about 26% of home purchases. You don’t want to be skimped!
4. Keep An Open Mind
Before viewing houses, arm yourself with a list of what you’re looking for while keeping your options open. Upon entering the house, look for everything you don’t like. Check out the kitchen plans, the paintwork, and the entire layout. Inspect the plumbing, electric installations, and the roof.
According to NAR Realtor, about 33% of Florida new homebuyers don’t want to deal with renovations and other issues after purchasing a home. Among the issues they don’t want to inherit are electricity and plumbing problems. A further 33% want the freedom and flexibility to customize design features to their preference.
Anything you don’t like in a new home is a potential candidate for renovation. List everything you don’t like and use the list to drive down the price, citing the need for repairs and upgrades once you buy the house.
5. Work With A Reliable Agent
A good real estate agent will listen to your dream home idea. They understand that it is your dream house, not theirs, and can only guide you towards what will serve your interests. They will help you search the market for a range of properties that suit your budget and preference. To get reputable agents, ask for referrals from recent local homebuyers.
A professional real estate agent is bound by a code of ethics that obliges them to prioritize their clients’ interests. They are also obliged by law to disclose all details about a property to the potential buyer. An experienced agent should give you the correct information about the prices of property within the area you are interested in.
6. Consider This Before You Close
Inspect the house you want to close on, looking beyond the decorations to the imperfections you may have missed during your first visit. Check the garage, including the garage door, the walls, and the ceiling, for cracks and damage. Webfoot Concrete Floors reports that 80% of home buyers consider the garage a crucial factor before making an offer for a home.
Check if the home has foundation problems, such as cracking or sinking. Inspect the home’s roof over the garage for signs of sagging. Don’t be afraid to ask your agent questions about the condition of the house and property garage.
The Bottom Line On Beginner Home Buying
Buying a home is one of the most impactful financial decisions you will make. Approach it with a sober mind, and listen keenly to the professionals. Don’t overshoot your loan expectations on a house; talk with your banker for comfortable repayment terms. Prepare to handle a shelf load of paperwork and documents during the transaction for any houses or properties. These include the written offer, the signed counteroffer, and an inspection report with all fine details included. However tough the journey, better days are still ahead, and the ending will be a warm home for your family!
