Purchasing a home can be challenging, especially when you are a first-time homebuyer. In fact, it can seem so daunting that you either simply go with the first home that falls within your budget or continue to rent. To make your first-time home buying journey a little less stressful, here we have compiled eight tips to help you better navigate the process and save money:
1. Know your needs and budget parameters
You have many options when buying a residential real estate property: a conventional single-family home, a condo, a townhome, or a multi-family apartment with two to four units. Determine your specific needs, requirements and affordability to buy a home that ensures optimal satisfaction.
2. Start saving for a down payment
Most homebuyers put about 20% down; however, many creditors now allow much less, especially as little as 3% down for a first-time home buyer. However, the lesser you put down, the higher costs you must bear. Thus, start saving as soon as possible for a down payment.
3. Check your credit score
Your creditworthiness is one of the most important factors when it comes to successfully qualifying for a home mortgage. Check your credit score before you start the home buying process.
4. Pause any new credit activity
Lenders run a hard inquiry when you open a new credit account which will temporarily affect your credit score. Avoid new credit activities when applying for a mortgage for your home.
5. Explore your down payment options
First-time homebuyers have lots of secure financing options to help them acquire a home when they do not have the minimum down payment of 20%. Your options include federally-backed mortgage, bank loans, and credit from friends. As the mortgage interest rate determines the final total price you should shop around to find the most feasible option.
6. Find a suitable neighborhood
Picking the right neighborhood is as necessary as locating the right real estate property. A home in the neighborhood with schools, hospitals, grocery stores, infrastructure development and other facilities have higher value and price.
7. Buy a home for tomorrow
You can easily find properties that meet your present needs. However, if you are planning to expand your family, a larger home would be more appropriate.
8. Schedule an Inspection before making contract
Home inspection is critical when purchasing a new home. Faults such as a broken window, out of order taps, and unpaid utility bills will all be factors that will determine price in your official offer.
If you are a first-time homebuyer seeking to purchase a real estate property come to Seaboard Properties and let our expert team guide you through the process.