5 Tips Every First Time Home Buyer Needs to Know

Posted on December 1, 2018 · Posted in Currency And Stock, Debit And Credit, Finance

Home buying, whether it is your first time or not, will always be a big deal. It is one of those financial decisions one can make a huge impact on your life. However, many people fall in the “rush trap” when purchasing a house.

If you plan on buying a house soon, then good for you, we have listed below five of the best tips to make your home buying a success, so remember to take notes to make sure you don’t miss any significant detail.

Think About Your Long-Term Plans Before Buying

We all have a dream home. However, a house is a tangible asset stuck on the ground. Before making the purchase, think about your plans, and whether or not you’ll most likely stay in the area or not. Why invest in a house you won’t even settle down at for many years to come? Of course, if you have more than enough funds to have a residence in most places you go to often, you’re pretty much excused to do as you wish.

Check on Your Finances and Only Buy What You Can Afford

Many people live way beyond their means, which meant stretching out the budget and opting for loans that can drag you to bankruptcy. Even seemingly financially stable people tend to lose their brand new houses after the economy turned south. So, when purchasing a home for you or your family, make sure to assess your finances and buy what you can actually afford. It would be best not to go after what your mortgage company believes you can afford and settle for an amount less than 1/3 of your income.

Good Read: This is how you know you’re living above your means

Get Pre-Qualified for Mortgage Loans Before House Hunting

Not knowing how much you can spend is one of the biggest mistakes any homebuyer can commit. By getting pre-qualified early on, you’ll learn how much more money you need and if you need to apply for FHA loans Houston. One only needs to provide financial requirements to a mortgage lender, and they will assess how much money you can borrow. This way, you can look for houses within the price range and then all you need to do next is get approval for credit.

Consider all Costs Before Signing the Contract or Paying for Anything

Many think that the purchase price is the only thing you need to check before buying. But what they fail to realize is that your expenses can quickly add up. Insurance, real estate tax, maintenance, home improvements, and homeowner association fees are just some of the costs you need to consider.

Weigh in Your Options

There are deals that one may find too good to be true, while some looks are promising but are actually quite a rip-off. When choosing between homes, it’s best to have three to five options and weigh in the pros and cons. This will help you determine which house would be best for you and your future.

It would also be a good idea to find a trusted realtor when buying a house. Contrary to popular home buyer’s belief, a reliable realtor will protect your assets while getting you a good deal. Make sure to keep this list in mind, and you’ll have a higher chance of owning a good home you love, can afford and is actually a good investment.