Buying your first home is an exciting time, and the transition from renter to owner presents a long list of important long-term benefits. However, there are numerous thoughts and fears that many have when considering buying their first home.
Beginning the initial process of owning a home for the first time, most people spend quite a bit of time searching for the perfect home, in the right neighborhood, and in the right location. Selecting the right property that is a good fit on all levels and making sure the location meets all your requirements is obviously an important part of making sure your short and long term needs are met.
However, as you get past the initial stages of simply looking at different properties and trying to determine your exact needs, buying a home may be a little more complicated than you first thought. Most first-time homebuyers feel a bit overwhelmed at first, and a top-tier real estate agent can offer first-time homebuyers significant help.
Financial help for first time homebuyers
More 5 important tips
Think about the present and the future
When looking for the right home to buy, it’s important to think about what will meet your needs today and in the future. Most of the time, buying a home is not only a financial commitment but also a time commitment; that is, you will probably live in the house for at least several years.
If you don’t have kids, a little cabin on the lake might sound like fun now, but if you decide to have kids years from now, it can become impractical very quickly. Thinking about your current lifestyle and how it might change in the coming years is an important consideration and can help make your home purchase successful in the long run.
Choose a real estate agent carefully
Choosing the real estate agent you work with is a very important consideration, perhaps the most important. A good real estate agent can help make the home buying process much easier and more successful. Real estate agents are seasoned professionals who know what to look for, what to watch out for, and all the important details you’ll need to take care of when buying your first home.
Some real estate agencies offer special programs that can provide significant help to first-time homebuyers, such as down payment assistance, tax credits, and special mortgage programs. There are even a select few real estate agents who are willing to waive a portion of their commission and offer it to homebuyers as cash back. If there are restrictions on cash back rebates due to lender guidelines, then buyers can apply the rebate toward closing costs. Either way, it’s a significant financial bonus and can provide a boon for first-time homebuyers.
Pay attention to the type of mortgage you accept
Knowing the home price range you can really afford is based on many factors, like your credit score and your debt-to-income ratio. Knowing your budget from the lenders perspective is very important so you don’t waste time looking for properties that don’t fit your budget and also don’t fit a lender’s criteria. An experienced real estate agent can help you through the mortgage pre-qualification process so that you are ready to not only make an offer on a property, but also be able to successfully obtain a loan and close on the property.
In some trending real estate markets, the seller won’t even consider an offer unless the buyer has a pre-qualified certificate from a lender. Working with the right real estate agent who can help you get pre-qualified and who is also affiliated with multiple lenders, title companies, and home inspection services will help set you up for a successful home buying process. In addition, it will allow you to negotiate the sale price of a home from a position of strength.
The details, terms, and costs associated with your mortgage are important to knowing how much a home will cost you on a monthly basis and over the life of a mortgage. Knowing if there is a free down payment program associated with the loan, the interest rate, term, and closing costs are just a few of the considerations you need to be clear about before committing to a mortgage. A very important element of a mortgage is whether the interest rate is fixed or variable.
A fixed interest rate will give you a fixed interest rate for the entire term of the mortgage, resulting in a predictable monthly payment that is the same month after month from the first month until the last payment is made. An adjustable rate mortgage will typically offer a fixed rate for a short period, such as 1 year, 3 years, or 5 years, and then the rate will fluctuate based on a set parameter, such as the London Interbank Offered Rate, also known as LIBOR.
Other expenses besides your mortgage payment
We all know it’s important to make sure you can afford the monthly payment on a new home, but what about the other costs associated with home ownership? In addition to your monthly mortgage payment, there will be other costs associated with owning a home that some first-time buyers may not have thought of. Take some time to list all the possible expenses that will go into the normal upkeep of any property you are considering.
For example; Will you need to maintain your yard to standards set by your neighborhood homeowners association, which means purchasing lawn maintenance equipment or hiring a service to do it for you? What are the costs of your monthly bills for water, electricity and gas? Is there adequate WiFi or cable service available and the fees associated with it?
Keeping a home in top condition is not only important for maintaining a standard of living quality and following HOA rules, city ordinances, or even implied rules based on how your neighbors care for their homes, but also for value resale of a house. .
resale value
When looking at all the different properties available, it’s always a good idea to listen to your real estate agent’s advice on which homes present the best resale value opportunities. Depending on the area you are in, there will be certain properties that lend themselves to higher potential resale values due to the number of bedrooms, the amount of property the home sits on, the school district, or other factors.
An experienced real estate agent will know the area well and what will sell quickly. Listening to his advice will not only ensure a good decision today, but it can also save you from major headaches when you try to sell the property years from now.
An experienced real estate agent is the best help for first time home buyers.
Buying your first home or even your next home can be a bit intimidating and involves making a number of careful decisions. However, working with an experienced real estate agent who works for you specifically as a buyer’s agent rather than a transaction agent will help make the process smooth and successful.
“We can’t imagine a better home buying experience. Our real estate agent was professional, courteous and direct and did everything necessary to get us a fair deal and ensure we were buying a home that was right for us. On top of everything That, they offer a 1% rebate on the purchase price of the house! I would recommend them without hesitation…you just won’t find a better realtor.They gave us a cash back of $3850 when we bought our house through them Thank you Kellie and Kent Lighthall.”
Stay on your goal of buying your first home and explore the programs available from some real estate agents; like down payment assistance and the homebuyer cash back program, both of which are available to all first-time and next-time homebuyers.
