Are you are thinking about or planning on buying a home for the first time? Buying your first home may be a joyous time but it may also be overwhelming as well. Here are a few things you may want to consider or know about before buying a home for the first time.
1. Do a search on houses in the area you are interested in living in – If you haven’t already started the process of searching for houses that are for sale, then you may want to start by looking online. There are many houses listed for sale online at real estate agency websites. Also, sites like Craigslist have postings of homes that are for sale in particular areas and neighborhoods.
You can do a search for houses within a specific price range that you can afford. When you click on a house that interests you, you will be most likely be shown pictures as well as a description of the house. If you are interested in looking at a particular house in person, you would then contact the agent either through phone or e-mail to set up an appointment.
2. Save up money before buying – You will want to have a good amount of money saved up not only for the down payment, closing costs and any other fees, but also for household items that you will need after you move into your house. If you drain your bank account when you buy the house, then you will not have much leftover for home furnishings, furniture and other household items. It would also be good to have a little cushion in the bank, just in case you would need the money in an emergency.
3. Only buy what you can afford – It may be a good idea to write down a list of the monthly expenses you already have now. If you are going to be owning your own home, remember you will also be paying for utilities as well. If you chose to have other services, such as cable and internet, you will also have to add that to your monthly expenses. You may want to use an online tool, such as a mortgage payment calculator to see how much mortgage you can afford. You probably do not want to strap yourself each month because your mortgage payments are too high.
4. The more you put down, the less your monthly mortgage payments will be – The more money that you put down on the house at the time of sale, the less your mortgage payments will be each month and that is also less money that you will be paying in interest on the mortgage loan. It may be a good idea to open a savings account specifically for saving money to put towards your down payment. However, you may want to have some money leftover after putting out money for the down payment, so be careful how much you put down. You may need some money for repairs of the house, remodeling and home furnishings.
5. Check your credit – Although a mortgage lender will check your score before they approve you for a mortgage, you may want to check your credit score for yourself before doing so. If your credit score is poor or low, a lender may not approve you for a mortgage. You may want to work at improving your credit before considering buying a home and trying to get approved for a mortgage. Also, if you have good or excellent credit, you may qualify for a lower interest rate on the mortgage loan.
6. Get an inspection of the house you are interested in – You may want to have the house inspected for any damages or other things that may need to be repaired. This may also help you to reduce the price of the house if you can negotiate a lower payment due to the repairs that need to be taken care of. If the cosmetics of the house are very outdated, you may also be able to negotiate a lower selling price if you are planning on remodeling.