A Quick Guide to Buying your First Home

Perhaps you are ready to make a house a home. You want to purchase a place you can call your own where you can build memories and create a life with your friends and family. You may also feel like it is time to invest in a financial foundation for your future. Buying a home is an exciting venture but it can also be stressful. Here are some tips for a first time home buyer.

1. What type of home suits your needs?

The options can be overwhelming if you do not know what you are looking for to start as there are many options when it comes to residential properties. You can buy the traditional single-family home, a townhouse, a condo, a duplex, or a four-plex. There are pros and cons to each option and it is important to consider which type of property is best suited to your needs.

Once you have considered the type of home that will suit your needs, you need to decide if you would like a pre-owned home or one that is brand new. Choosing a fixer-upper may seem like a good idea when you are looking at price but remember to consider the money, time, and energy that will be required to make the house your dream home.

Type of Houses to Buy

2. What specific features will your ideal home have?

Because this will be the biggest purchase you will ever make, you want to make sure you are getting exactly what you want. You will want to be a little bit flexible if you are looking at previously owned homes but you also want to make sure you find something in a neighborhood you like and want to live in. You will want certain features in a home so you want to find one that suits your likes and needs. A new home should have what you are looking for or you should be able to add/change features easily.

Home with a Large Kitchen

3. What kind of mortgage do you qualify for?

Before you start looking at homes, it is a good idea to know what price range you can afford. Talk to lenders before you start looking so that you know what is within your budget; you would hate to fall in love with your dream home only to find out that you will not qualify for a mortgage.

Lenders will want to know how long you have been at your current job and what your monthly income is. They will also need to know what other loans you carry for vehicles and what other debt you are responsible for.

Mortgage Bond Agreement

4. Know what you want so that you are not getting a bigger or more expensive home than you actually want.

Sometimes you may qualify for a higher loan but it may be more than you want to spend on a home or a larger payment than you would like to commit to. Make sure you know the total cost of your purchase and not just what the monthly payment will be.

Remember that there are other costs associated with the purchase of a home and you need to take those into consideration as well. Know what you can afford for a down payment, how much property taxes are, how much insurance is going to cost, how much money you need for improvements if you choose to do any, and what the closing costs will be.

Knowing these costs ahead of time will help you to determine how much money you will actually need to borrow and how much money you need to have upfront.

Mortgage Money

When you are ready to buy a new home, there are many things to consider and you want to put serious thought into such a major purchase.