The home buying process might seem tricky for a first-time homebuyer, but it’s possible to navigate the ins and outs of the real estate buying process as a newcomer and come out on top. What makes it not so straightforward is the fact that you have to think about how different elements of the home buying process go hand-in-hand for a successful overall process.
Well, some people might think, isn’t it as easy as getting a realtor and picking a home from the many listings on the market? Truthfully, no. You have to approach it will all kinds of information, read countless resources, and consult experienced people.
We have compiled this guide to ensure you get started on the right track when you go about purchasing your first home.
1. Assess Your Finances Critically
Homes don’t come cheap, and actually, the biggest hurdle for many new home buyers is raising the down payment. You need to be adequately prepared financially before starting to look for a house to buy. Carry out an exhaustive evaluation of your financial health to ensure you won’t go broke while buying your home. Be realistic about the kind of house you can manage to pay for based on factors like personal monthly expenses, income, bills, and property taxes.
Home buying involves high costs, some upfront and some along the line. That’s why you need to ensure you have some savings on the side to hold you in good stead should you spend most of your money on the purchasing process. You also need to ensure your credit is in a healthy position, especially if you are considering taking a mortgage.
2. Decide Where You Want to Live
It’s a common dilemma most new home buyers face because they want to ensure a good quality of life and, as an investor, ensure the location has good growth potential.
However, remember different locations come with different costs. So, you need to evaluate carefully the living budget for the area you want to buy a house and settle. This involves conducting a cost-of-living analysis of the potential locale and digging around for reviews.
3. Select An Appropriate Lender
Here’s where things get a little tricky: Selecting the best lender to go with. This is an incredibly delicate step requiring you to do lots of research before settling on one lender.
While looking for a lender with the most favorable rates is okay, it is wise to consider the repayment period, terms, and the convenience of the mortgage types they will offer. The best mortgage lenders embrace FHA, VA, and USDA loans for new home buyers. We recommend you take your time with this one to save yourself from potential heartaches in the future.
4. Understand How Much You Can Afford
Banks will always be ready to loan you the amount they think your finances can handle. But it’s you who understands your financial muscle better in a true sense. Most first-time buyers get in over their heads and end up burdening themselves with debt.
Before you decide what house you can afford to pay monthly payments, determine the total cost of the house. Know the amounts you will need to cough up each month and budget them against your earnings. Ask yourself, how much money remains to foot your bills? Do you have money on the side for unexpected budget busters, home enhancements, or repairs?
5. Select The Best Agent
Getting your finances in order and finding the best lender will only take you halfway through the home buying process. If you have decided to buy a home in an area you aren’t familiar with; a real estate agent will come in handy.
Real estate agents usually know their target areas like the backs of their hands. They are also well-versed in the home market trends and are your best bet to getting a suitable home. Though not compulsory, you are better off working with one than without.
6. What Features Do You Want in Your Ideal Home
Most new home buyers have those must-have features for their dream house. However, it’s also good to be practical. The perfect house rarely exists, but your life will be much easier if you consider factors like functionality and whether the house fits your immediate and future needs.
We don’t recommend picking a home you are out of touch with. We just urge you to be a bit more flexible. An ideal house is one in which you and your family can live comfortably and happily.
Final Thoughts
Are you having a hard time buying a home? Here’s the deal, whether it’s your first time or not, every home buying process will always open you up to new experiences.
However, you don’t have to learn from your mistakes. Contact Blanchard & Calhoun and let us help you. Our agents have a robust understanding of the local Augusta real estate market and will help you find the most ideal home.