Alt. tag: A clean, new, modern apartment
Buying your first home is an experience that can hardly be compared with anything money can buy. Just thinking about it brings such excitement in one’s life. However, it also brings apprehension. It is definitely not an easy task, so one has to be prepared to hire professionals to help at a certain stage of the process.
Step one – Set your budget
Houses are expensive, which is why you have to be well aware of your financial capabilities before you hop on that train. House hunting is stressful enough even when you do have a determined budget to work with. Without it, it can turn into a disaster and your dreams can turn into a nightmare.
Caption: The first step of the guide to buying your first home is budgeting
Alt. tag: Person holding 100 dollar bills
It is important to know that a price tag that you see on a listing is not all you will have to pay for it. You have to be prepared for many more additional expenses and you have to have a budget for the unplanned expenses as well. Trust us, there are going to be some.
Be that as it may, you should be pre-approved for a mortgage even before you start looking at houses. That’s how you will determine your buying resources, which brings us to step two!
Step two – Learn about your mortgage options
In order to be completely aware of your financial capabilities, you need to know what types of mortgages are in store. The conventional mortgage means that you have 20% of what your future property’s worth and then you take out the loan that covers the remaining 80%.
There are many options for first-time homebuyers, even when they cannot provide for the 20% down payment. Get to know the current lending rates before you decide how much you are ready to pay for the deposit, which can range from 5 to 20%. Naturally, the higher your deposit, the less you will have to pay later and a smaller amount of money will you waste on insurance and various fees.
Step three – Choose a realtor
Only now that you know how much you can stretch your budget should you start searching for your first home. You will need a good realtor for this task. The real estate market is such a large area that you cannot explore it on your own. Plus, you will need professional help with negotiating, closing documentation and many other tasks. Think of a realtor as your personal advisor, negotiator, and consultant. That means that you need a person who understands that buying a home is more than just a transaction.
Caption: A good realtor is worth their weight in gold
Alt. tag: A person showing a house plan
Before you go and hire a real estate agent, decide on the following:
- your budget, obviously – every guide to buying your first home starts with budgeting
- the area you would like your place to be in
- the size of your future home
- the vicinity of some amenities that are important to you
- any other specifics
Step 4 Look for your new home
Knowing what you want will bring you to it more easily. But, be open to suggestions from people whose job it is to find you a home.
Be prepared that the viewing process might take some time. After all, this is a big decision and you need to be absolutely sure that you get it right. Here are some tips for viewing houses:
- Prepare a list of questions to ask a seller or a seller’s agent;
- Don’t go alone – the second pair of eyes will help you see all that the seller might not want you to notice;
- Show up early so that you have enough time to look around before the place gets too crowded;
- Take a lot of photos and videos – 3d tours are a great way to feel the area before you go to see it in person, but since you are there, you can document what you think is important.
- Make notes on your impressions;
If you are interested in buying a particular place, don’t call the professionals from zippyshellcolumbus.com just yet. Arrange for the second viewing first. This can help you see your prospective home and its neighborhood at different times of day or week.
Step 5 – Make the offer
Once you find the place that you are ready to call your first bought home, it is time to make an offer. Ring your realtor and tell him/her that you are ready for this step. They are the ones forwarding your offer to the seller and they should help you put in all that is necessary – the price you are ready to pay, the conditions that you suggest, the closing date and the amount of the deposit.
Realtors often advise their clients to make an offer comprising a slightly lower price than what they are ready to pay. That way, if the offer doesn’t come through, you can make the second one with the price that is preapproved by your mortgage lender.
Step 6 – Organize a home inspection
This part of the guide to buying your first home is not really obligatory but is advisable. Since this is a life-changing decision, it shouldn’t be left to chance. You should hire an inspector to assess the condition your future home is in. After that, you can negotiate the repairs with the seller or even legally withdraw your offer if it turns out that the house is not in such a great condition.
Step 7 – Finalize the deal
Finalizing the deal means getting the final approval of your mortgage, deciding on insurance and other formalities. Having a lawyer by your side here can be priceless.
Caption: Once you finalize the deal, you will become the proud owner of your first home
Alt. tag: Two people shaking hands to illustrate one of the final steps of the guide to buying your first home
Step 8 – Book movers
Now that you know your future address, it is time to book the movers to get you there. As soon as you determine the moving date, start preparing. Begin by getting rid of the things you will not need in your new home. Then, you should find a place for storing your belongings during the moving process, especially if we are talking about your musical instruments or other sensitive items. After that, find the packing supplies and start packing!
Step 9 – Settle in
We have reached the last step of the guide to buying your first home. Congratulations on buying your first property! Now all you have to do is unpack, relax and start creating some new memories in your new home!