A house is always built with love and dreams but when it comes to purchasing a developed property, countless thoughts strike in one’s mind. Whether it will be a worthy decision or not? Will I be able to manage to keep up with the new neighbors? Whether they will be welcoming or not? Such thoughts are quite common when you decide to buy a house and you’re not alone here.
If you’re planning to buy a home anytime soon for the first time, you surely need expert guidance and you have come to the right place. In the following article, we will guide you through the entire procedure of home buying. Keep Reading!
You are about to full-fill the most treasured dream of your life. The house you have been long planning for is about to be yours. But you know it won’t come easy. Hundreds of hurdles would be there that you’ll face as a first-timer. It will take a lot of research, time, and of course, money. But these obstacles cannot be compared with the pleasure of finally buying your own house.
Remember, owning a house is, indeed, a great accomplishment. It may seem difficult but is worth it for sure. To ease this procedure, we have put together this easy guide to assist you to find and buy the house of your dreams. So, let’s get started!
Here’s an exclusive guide for home-buying:
1. Financial condition
It’s always better to save some money for emergencies rather than spending it all for your dream. Pause for a moment and check whether you are ready to buy a house. Inspect your expenses and savings first. Lump-sum money is required to purchase your own house. That may even cost you your life savings. Conclude to the point whether you are ready for the down payment and other associated costs.
2. Home loan
No! Don’t discourage yourself from not being able to pay the full amount of your house. You can always choose to go for a home loan to full-fill your dream. Owning a house is now more affordable with these home loans. Apply for a home loan from a genuine lender to ensure zero to no hurdles in the further procedure.
Before selecting your dream house, check for what mortgage program you are eligible for, how much money you can borrow and the interest rate associated. As lenders always have a different perception than us, it’s always better to check legally how much mortgage you qualify for in advance. Apply for a mortgage and complete the necessary formalities to get approved for a loan. Carefully check all the types of loans available and choose what’s most beneficial for you. Contact your bank or other lenders for further queries.
4. Credit score
Nowadays, a credit score is used to determine the amount of loan you would be sanctioned for. Generally, in order to qualify for the home loan, you’re required to have a high credit score that comes with a good history of paying installments and bills on time.
Moneylenders often choose to limit the expenses (homeowner insurance, taxes, interest, and principal) by 30% of the money borrower’s gross income per month.
5. Down payment
Before making any further decision, you need to get hold of the down payment you need to pay for your loan. However, there are options like the Biden $15,000 tax credit for first-time homebuyers that can provide assistance. Usually, 20% money of the total house cost is asked as the down payment. If you cannot pay 20% of what you are about to purchase then you need to give it a second thought. Also, the less money you put in the more you have to pay with interest.
6. House property
Now coming to the real home, you can afford the one you dreamt of. Start looking for a property according to your requirements and the loan you have been approved for. There’s always a good time to purchase a property and the real estate market never stays the same all the time. It is important to check where you should buy your first house. Look for services, resources, and amenities nearby and make an informed decision.
Now that you’ve completed the financial hurdles, the fun begins: looking for your dream home!
7. Find a realtor
The choices out there may overwhelm you. One or two stories? Two or three bedrooms, or more? In the city, suburbs, or countryside?
But a qualified realtor can help you quickly narrow the list to just the homes that meet your needs and desires. They may also have access to homes you’re unaware of, like ones being privately sold or not yet on the open market.
They can also help you evaluate each home and decide whether it’s worth the asking price and assist with negotiations.
8. Inspect the home
Once you’ve picked a home, it’s time to buy, right? Not so fast. You want to make sure the place is in good condition. You’ll want to examine the home’s exterior, the foundation, the plumbing, electrical systems, air conditioning and heating, and even the floor and walls.
You’ll want to pay close attention to the basement, if it has one. Realtors will tell you over 80 percent of home problems start in the basement.
You might also consider having a professional home inspection. It may cost some upfront but will be well worth it if it uncovers issues that could cause problems down the road.
9. Make an offer
Once you’ve determined the home is in satisfactory condition and meets most of your needs, it’s time to make an offer. The realtor can help set the offer price and negotiate with the seller. Depending on the market, the offer price may be higher or lower than the seller is asking.
10. You’re a homeowner!
After the purchase process is done and you’ve signed on the dotted line, the home is yours! It’s time to move in, decorate, and enjoy your new home.
Benefits of buying your own house
In a rented house, you never have living security. You may be living in a house for months and suddenly the owner decides to kick you out. You cannot do anything except move out. While in your own house you have a sense of stability for yourself and your family. The peaceful sleep in your own house is worthy of all the sacrifices you make for purchasing it.
Owning a house is always beneficial as it gives you the power of decision. One cannot renovate a rented house liberally. Whereas you decide how to build and style your own house.
You built Equity
It’s the value of the property you own. Even if you sell this property later on you would be getting value in exchange for your house. Now you can even rent someone and earn some extra money.
Flow of cash
As a homeowner, you can rent a half portion of the house to ensure a constant cash flow every month that can cover some of the essential expenses.
First-Time home buyers!
Buying our own house would be the biggest decision of your life. Your biggest asset is the equity whose value will increase significantly over time. It is advised to research well before making any related decision. Make sure you make your dream of a house a success despite all the obstacles that halt your way!
We hope that this overview will help you fill the gaps in this path of your home buying journey.
Always keep one thing in mind that no matter how experienced a realtor you’ve hired for the job, it is essential for you to be educated about what you’re getting yourself into, be it maintaining a good credit score or applying for the mortgage. The more knowledgeable you’ll be, the less stress you’ll experience in the procedure.
In addition to this, if you’re planning to buy your first house and require special and tailored assistance, Levin Rinke Realty is your one-stop destination.
We hope you found this blog post First-Time Homebuyer’s Guide 2023 useful. Be sure to check out our post House Hunting Tips for First-Time Home Buyers for more great tips!
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