While buying your first home is a great investment, it’s always wise to do your research beforehand. Buying a home is a big decision and not something to be rushed into or taken lightly. There are so many options out there that you can easily get overwhelmed and need professional and legal help. Do you want a plot? Do you want a condo? Is single-family home your first choice, or maybe a duplex in case you want to rent it out while also living on-site? In this blog post, you’ll find a few of the top things you should consider when buying your first home.
Real Estate Agent or For Sale by Owner?
One of the first things you need to consider is whether you want to hire a real estate agent to help you find the perfect home or just look for a home that’s for sale by the owner. There are pros and cons to both of these choices. For instance, real estate agents have access to homes that you might love, but can’t get to look at on your own. On the other hand, a real estate agent can get expensive for some, while the owner might be willing to sell at a cheaper price. Do your research to determine which option is the best for you.
Understanding the Entire Process
It’s important to note that buying a home isn’t as simple as going out and purchasing a big-screen TV. Below you can find a general breakdown of the process you’ll undergo when trying to purchase a home. Understanding this process is key to purchasing the right home for you and your family.
- You’re going to need a down payment in most cases, usually, 20% of the home’s value is required
- You should apply for pre-approval for your mortgage so you know where you need to be with your budget
- Search for the perfect home and then make an offer
- Once the seller accepts your offer, then you’ll sign a purchase agreement and give them a deposit that can’t be refunded, so make sure this is what you want
- Officially apply for your home loan, then hire an inspector to inspect the home from top to bottom for any possible issues that need to be fixed before you sign
- Go to the closing, which is where you’ll sign the paperwork, give them the down payment, and finally get your keys to your new home
Plan for Other Expenses
The down payment isn’t all you have to come up with when you’re buying a new home. One of the first things you should check into is home owner’s insurance if it isn’t built into your payments. There are different policies and different price points out there when it comes to homeowner’s insurance, so you need to do your research here as well. Other fees could include closing costs, homeowner’s association fees, and more, so make sure you plan your budget to cover these expenses as well.
Decide if a Fixer-Upper Is for You
For many people, the thought of working to fix up their new home is amazing, for others not so much. When home prices are on the rise, it can seem better, and easier, to pay for a house at a lower price and just fix it yourself. The question is, is this something you can do? Are you handy with your hands? Do you have the time to do the work? If not, then you’ll end up living in an unfinished home for quite a bit of time to come, and you probably won’t be happy that way.
These are just a few of the things that you should consider when you’re thinking of buying your first home. Do your research, take your time, and the decisions will come easily.