Buying a home is exciting, but when it’s your first home it is even more so. Many people just get out in the market and start shopping around, but for the best experience it is important to do your homework first. Thinking about these things might be tedious right now, but in the long run they will help you get the most out of your home.
Know Your Limit
Your first step should be to figure out how much of a monthly payment you can afford. Remember, the cost of home ownership is more than just a mortgage payment. You also need to factor in property taxes, upkeep & maintenance, utilities, insurance, and any homeowners association dues you may encounter. Although the loan amount you qualify for gives you a solid upper limit on your spending abilities, you need to remember that realistically you may not be able to afford that much house. Make sure you know what type of monthly payment you can afford and find a real estate agent that can help you stay within that range.
Plan to Stay
The longer you stay in your home, the better. If you think you may be moving in a year or two, perhaps you want to rethink buying right now. Another common mistake first-time homebuyers make is to buy a house that works for them right now rather than thinking about where they want to be in two or three years. For example, a two bedroom house might be perfect for right now, but if you’re thinking of starting a family then in 5 years it might be way too small for you. Plan ahead!
Shop Around
This goes for your agent and your mortgage broker. Find people who will be on your side and help make the buying process as painless as possible. When it comes to your mortgage it literally pays to shop around for the best rate and terms. A mortgage lender should be able to tell you exactly how much you’ll need for closing costs, which will help you determine how much of a down payment you can afford. Your down payment will determine whether or not you will need mortgage insurance, so it’s all important!
Plan to Compromise
Make a list. Write down everything you want out of your dream home and then figure out where you are potentially willing to compromise and where you aren’t. Make a list of your absolute “must haves” and get out there and start looking at homes. Then, be willing to adjust your list as necessary!
Finding a real estate agent you like and can trust is one of the most important aspects of any home search. At Cooper Realty we strive to make the expensive and often stressful event of buying a house as easy and painless as possible. Give us a call today and put us to work for you – 302-644-2266!