Where to Begin- A Guide for First Time Home Buyers

Buying a new house for the first time sounds appealing and satisfying. But only the first-time homebuyer knows the story behind how laborious and lengthy a home buying process can be! There are a lot of factors that an individual needs to look into in order to make the best deal in the most cost-efficient manner.

We don’t jump straight to our preferred amenities, location, and neighborhood rather we question ourselves whether we have the affordability in the first place to ensure the perfect deal. That’s why if we structure the steps properly we’ll be able to make it a hassle-free experience. Let's learn where to begin- a Guide for First Time Home Buyers.

Affordability

Affordability:

Like I mentioned before, affordability is the first thing one considers while planning it. There are apps available that help calculates a person’s equity which is how he’ll be able to estimate how much affordability he has. Moreover, it’s wise to make sure that his portion of the debt isn’t going to engulf all the savings. Having an emergency fund is essential to cover the most unexpected expenses.

Searching for a Real Estate Agent

Searching for a Real Estate Agent:

A real estate agent will comprehend all your needs, desires, preferences, and also your affordability. It’s important to look for experienced agents because they’ll be able to provide all the necessary and most up-to-date information about the market. Whenever they’ll find a house that fits your expectations they’ll contact you. Afterward, you’ll give a short tour of that house and make a competitive offer.

Process of Pre-approval 

The Process of Pre-approval:

When you buy a home with a loan, pre-approval is as important as checking your affordability. Not everyone is eligible for a home loan. Lenders will provide loans to the ones most capable of returning them on time. They will investigate income, assets, and also credit score before lending you the money. The amount of loan is dependent on the level of income. In addition, the higher the credit score, the easier it is to get a loan.

Looking into down payment and closing cost 

Looking into down payment and closing cost:

When you buy a house with monthly installment benefits, be cautious about the down payment and other inlaid costs. Usually, the down payment amounts to 20% of the home’s value & it should be paid while making the purchase. It'll vary depending on the asset against which you’ll be taking the loan. Even if the down payment can be small, it’s important to start saving for it. Closing costs including loan application fees, inspection fees, appraisal fees, etc. are equally important to save money for.

Choosing the Right Type of Neighborhood 

Choosing the Right Type of Neighborhood:

After considering the above-mentioned factors now it’s time to look into whether the neighborhood you’re going to live in is safe or not. Pay a short visit and ask the local people what goes on in that area and if it’s safe for your children or not. Also, it's necessary to learn if the home you're buying is convenient in terms of reaching essential spots like schools, hospitals, malls, etc.

Future Possibility of Profits 

Future Possibility of Profits:

Last but not the least, estimating appreciation value will help anticipate whether there is a possibility for the house’s value to increase over time. It's a significant matter because if the situation demands you could sell it at a much higher price. This is the most common guideline because most often we recklessly take a luxurious decision which is a matter of careful consideration.