6 Tips For A First-Time Homeowner

Table of Contents

1. Beneficial Tips For First-Time Homebuyers[+]
   1. Start Saving As Early As Possible
   2. Be Careful When Purchasing A House
2. More Helpful Tips Coming Your Way![+]
   1. Don’t Forget Your Budget
   2. What Are Your Needs?
   3. Don’t Forget An Agent!
   4. Make The Decision In Your Own Time

Although buying your first house is an amazing and exciting thing, the truth is, it’s also a very big “project” that might be even a bit frightening to some because they are not obtaining a home every single day.

What’s so “scary” about it? Well, there are so many steps that need to be taken and a lot of aspects of it that must be understood. That’s precisely one of the reasons why you may feel a bit overwhelmed at first.

But don’t worry. Many people and places can help you on this journey, and one of the best sources of information in this article will make this whole process a lot less complex and stressful.

Beneficial Tips For First-Time Homebuyers

Start Saving As Early As Possible

Don’t forget that you’ll be dealing with numerous expenses when saving for a house, such as these things below.”

1. Down payment – down payment requirement is going to depend on the type of mortgage you select, as well as the lender. Conventional loans intended for first-time homeowners require only 3% down. But remember that even this small down payment can be difficult to save. Therefore, utilizing a down payment calculator to determine your goal and immediately set automatic transfers from checking to savings would be advisable.
2. Closing expenses – these represent the costs and fees you pay so you can finalize your mortgage, and they normally range from two percent to five percent of the loan amount. For example, if you make a 3% down payment on a $300,000 house, your closing expenses will probably be between $5,820 and $14,550. This represents the extra cash you would have to pay on top of the down payment. The good news is that you can often ask the seller to pay a small portion of your closing expenses to save on other costs, like house inspections and many others.
3. Move-in costs – remember that once you acquire a house, you’ll need some money, so be sure to set it aside for the necessary home upgrades, repairs, and furnishings.

Be Careful When Purchasing A House

As aforementioned, buying a house isn’t something that you do all the time, hence you must be very smart about it. Yes, we know that this entire process can be complex and time-consuming and mess up your mind, but it still doesn’t mean that you should take things lightly.

Namely, in these situations, you must prioritize certain aspects of the house, like the location of the house, the condition of home appliances, the condition of the roof, etc. If by any chance you conclude that you’re not pleased with the roof, then be sure to hire a reputable roofing company that will provide you with the roofing solutions that will improve things. Generally speaking, all these previously mentioned factors (among many others) must be considered when buying a house. Otherwise, you may end up with something that doesn’t meet your needs and demands.

More Helpful Tips Coming Your Way!

Don’t Forget Your Budget

When we say your budget, we do not refer to the money you’ve managed to set aside for the house but also to other expenses you’ll have once you’ve acquired it. What does it involve?

It usually includes homeowners insurance, property taxes, maintenance, etc. Also, you may realize that your utility bills have increased as well. That’s why it’s important to ensure you have enough cash saved for any emergencies.

For different mortgages, lenders want to see at least two months of reserves (for taxes, mortgage, and insurance) in the bank. For instance, if your mortgage taxes and insurances are $1,000, you will need at least $2,000 in accessible savings to showcase.

What Are Your Needs?

It is widely known that our needs change as we grow older. Just because we loved and wanted something five or ten years ago doesn’t necessarily mean that things have stayed the same. Well, the same goes for the house you’ll be buying.

Maybe a few years ago, you dreamed of living in a space with a huge backyard and grand staircase, and yet in the meantime, you have concluded that you might no longer need these things.

In these instances, you need to analyze your current life situation properly. Where are you in life now, and what plans do you have for the future? If you plan on living alone, or possibly with one person only, then do you honestly need a huge home?

On the other hand, if you have children, are you planning to acquire a house closer to your work or school? These questions (among many others) must be asked if you want to determine what you truly want to purchase properly.

Don’t Forget An Agent!

Although it’s not mandatory to have a real estate agent in these situations, remember that this person will make things a lot simpler and help you hunt down the house of your dreams.

Don’t forget that these professionals can easily tell if a particular house you’re interested in is properly priced, whether the neighborhood you’ve chosen is safe and generally good, and how fast homes in this area sell.

Besides all these things we mentioned above, they will also be able to negotiate on your behalf and prepare all the necessary documents for you.

Make The Decision In Your Own Time

You might feel like you must put in an offer on the house fast, but don’t forget that it’s completely okay to take some time to understand whether a particular offer suits you or not and understand how everything works.

As stated in the beginning, this journey is both very thrilling and daunting, but there’s no need to worry too much because, with the help of these tips above, you will execute every task correctly from start to finish.

Thank you for reading!