5 Tips for First-Time Home Buyers
Closing on a house is a huge milestone for first-time home buyers. When your realtor hands you the house keys, you embark on a brand new chapter of your life as an official homeowner. However, it takes a lot of groundwork to experience that proud moment of finally having the keys in hand.
As a first-time home buyer, it’s essential to have trusted real estate professionals to guide you through the home-buying process. At Mark Spain Real Estate, our experts offer valuable industry insight to help you better navigate your house hunt and get you closer to your dream home. Read below for our comprehensive guide outlining the top five tips for first-time home buyers.
5 Tips for First-Time Home Buyers
Assess Your Debt and Credit
One of the first steps toward first-time homeownership involves assessing your financial standings. Before applying for a mortgage, you’ll want to take care of any existing debts that could significantly hurt your debt-to-income ratio. Mortgage lenders want to be confident that you can handle any existing debts with the addition of a mortgage payment. As you embark on your house hunt, do your best to take care of any credit cards, installment loans, or student loans that may be weighing down your finances.
In addition to eliminating your debt, you’ll also want to thoroughly evaluate your credit score before buying a home. Doing this early in the house-hunting process will give you time to correct any errors and improve your score before applying for a mortgage. With a poor credit score, mortgage lenders may require a larger down payment and a higher interest rate on your mortgage loan, making your monthly payments much more stressful.
Set a Budget
Buying a home isn’t just a one-and-done purchase. When you become a homeowner, you will face monthly mortgage payments, closing costs, property taxes, home insurance, maintenance and utility bills, and more. Before beginning your home search, you must establish a budget that accounts for the price of a home and the recurring costs that follow. For many first-time home buyers, emotion drives the house-hunting process.
However, when following a set budget, you must set feelings aside. Although you may fall in love with a house, it’s best to stay within your price range. At Mark Spain Real Estate, we can promise you that there is the right home out there for you that perfectly fits your budget and satisfies your must-haves. Your dream home awaits!
Get Pre-Approved for a Mortgage
Getting pre-approved for a mortgage before you begin your home search is the best way to be a proactive, first-time home buyer. Though it might be tempting to jump right into your house hunt, it’s best to take some time to assess your financial standings and apply for pre-approval. By doing so, you can begin your house search knowing exactly how much you can afford, which will steer you more toward homes within your financial limits. This will ultimately save you time looking at homes outside of your budget and bring you one step closer to your perfect home.
Getting pre-approval also demonstrates to sellers and realtors that you are serious about buying a home. Many real estate agents require their clients to get pre-approval before working with them, as they want to ensure you are committed to the home-buying process. Getting pre-approval will put you in a much stronger position when making an offer on a home, and it will ultimately make the process go a lot smoother for all parties involved.
Determine What Kind of Home You Want
Many first-time home buyers might get overwhelmed with options as they begin their house search. From single-family homes to condominiums, there are several types of homes on the market to choose from. As a prospective home buyer, it’s essential to narrow your house scope by pinpointing your wants and needs.
Do you need a big backyard for your pet? Are you looking for a home near your child’s school? There are several things to consider when buying your first home, and it’s best to nail down your non-negotiables before you start shopping for homes. As you embark on your house hunt, research the available homes in your area to pinpoint which ones meet your needs while still falling within your budget.
Find an Experienced Real Estate Agent
For first-time home buyers, it can be challenging to navigate the world of real estate on your own. With an industry professional by your side to help you navigate the home-buying process, you can find your dream home stress-free!
An experienced real estate agent will help show you properties in your area that fit your budget, attend showings with you, submit offer letters on your behalf, guide you through the closing process, and more! If you’ve been struggling to buy your first home on your own, a trusted realtor might be your missing puzzle piece.
Sell or Buy A Home with Mark Spain Real Estate
Are you looking to buy or sell a home? The experts at Mark Spain Real Estate are here to help start your next chapter! With decades of valuable industry experience, our team offers exclusive insight into some of the most popular markets in the southeast, including Atlanta, Dallas, Raleigh, and more. For sellers looking to streamline their home sale, check out our Guaranteed Offer Program to receive a competitive cash offer on your home in just 21 days.
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