Are you considering purchasing a home for the first time? Your first home purchase is both an extremely exciting and daunting process. For many home shoppers, buying a home can be a very emotional process. Owning a home is one of the biggest financial investments that you can make, and it’s important to make the correct choice. Whether you are investing in a condo, a townhouse, or a house, there are many factors to consider before you close. Today, we would like to offer some tips for first time home buyers.
Avoid Large Purchases Before Applying For A Loan
When you apply for a mortgage, you want to get the best possible rate. The lower your mortgage payments, the better. In order to obtain the best mortgage rate, you need to have the best possible credit profile. Therefore, avoid making any large purchases on credit for three to six months before applying for a mortgage. You want to prove to mortgage lenders that you are responsible with your purchases.
Get Pre-Approved For A Home Loan
The first step in this process is prequalification for a loan. Our independent mortgage brokers can prequalify you for a loan in a matter of minutes. Once you are prequalified, we recommend that you apply for pre-approval for a loan. When you are pre-approved, a lender will determine how much you can afford for a mortgage and how much they will lend you. When you are pre-approved, you will know which homes are in your budget. The last thing you want to do when looking for a home is to set your sights on a home that’s out of your budget.
Location, Location, Location!
Location is one of the biggest factors when looking at a home. If you have kids, you probably want to buy a home in a neighborhood with a good school district. However, if you do not have kids and do not want children, you could buy a home in a less expensive area where the schools aren’t so great. Remember, just because a neighborhood looks safe during the day does not mean that the neighborhood is safe at night. Drive around at different times of the day to get a feel for the neighborhood.
Some of the shows on HGTV are painful to watch because first time buyers want to purchase a home with a huge kitchen, a giant yard, and several bedrooms on a tiny budget. Don’t be those idiots! First time homes are often considered starter homes because you can always upgrade your home later or move into a larger house when you are more financially stable. Also, bigger houses equal bigger payments and more rooms to clean.
Factor In Other Costs
As a homeowner, not only will you have to make mortgage payments, but you will incur additional expenses as well. You will also be responsible for utility costs, property taxes, and possible HOA fees. Additionally, you will be responsible for any maintenance costs and repairs to your property.
Hire A Home Inspector
Although hiring a homeowner inspector initially costs you money, it could save you way more money in the long run. Home inspectors examine the home to provide you with unbiased information about the structure, interior, and exterior of your home. Home inspectors are able to identify any problems or flaws in the house that you are interested in. Their evidence could impact whether or not you decide to purchase the home.
Hopefully, these tips will help you in your quest for your first home purchase. Our mortgage brokers are here to make your home shopping experience much easier for you. Contact us today for your free consultation.