Buying a home for the first time can be exciting. However, it may feel overwhelming for some, especially if you see houses being bought at the median of around $360,000 and family homes flying off the market in one or two weeks.
With trends like these in real estate, you can easily be tempted to make impulsive purchases, preventing you from paying your mortgage loan well and hurting all your financial goals.
No one wants this. Believe it or not, it is worth purchasing your first house the right way – and this means buying a house that you love and won’t hurt your financial goals in the future.
As of now, you might be thinking, ‘yeah, this can be great, but where can I start?’ Well, to help you get started, consider the following insider tips to ensure you successfully buy your first home:
1. Choose the Right Neighborhood and Kind of House
Weigh out the advantages and disadvantages of various kinds of houses while prioritizing your lifestyle as well as the budget. Condominiums or townhomes can be affordable compared to single-family homes.
However, a shared wall with neighbors might mean having less privacy, not to mention the homeowners’ association fee when buying.
Ensure to also check out the potential neighborhoods well. For instance, you can go for a house and land in Mambourin below $500k and test out the commute to your workplace in the rush hours.
2. Research Mortgage Options
Although most individuals think that conventional loans are the only option for purchasing homes, you will get several mortgage options available to choose from, including VA loans and FHA loans.
Many lenders also provide the option of choosing between ARM (adjustable rate) loan and fixed rate. Each of these mortgage options comes with advantages and disadvantages. So ensure you consult home lending advisors to choose the right option which best fits your circumstances.
3. Stick to the Budget
Probably your main reason for buying a house is driven by your emotions. During this time, you may want the freedom of expressing yourself through the house you buy, have a vision for your lifestyle, and feel secure.
Most people buying homes for the first time become too invested in homes, only to realize that they can’t get a loan to purchase the property.
So don’t go overboard, even when the property seems perfect. Plus, ensure your budget includes the costs for renovations and repairs.
4. Save for the Down Payment
It takes around seven years for an average American homebuyer to save for their down payment, making it necessary to start saving money early.
While at it, consider setting up a savings account for the homebuying costs and check out apps, such as Acorns and Chime, to automate the entire process.
You need to also identify every area of your spending where you can cut back and commit yourself to setting up those funds in a brokerage account or savings account.
To Wrap-Up!
As the prices of buying a new home continue to hike, purchasing a house for the first time may look like an unachievable goal. But with proper planning, discipline, and these insider tips, that goal can easily be reachable.
