Buying your first place is an exciting, yet scary time. There’s so much to consider before putting a significant amount of money down on a piece of property. Real estate experts like Claudette Schwartz work to help first-time buyers find their perfect place without exceeding their budget.
Interesting in starting your search for your first place? Below are helpful tips and information before making any major financial decisions.
First-Time Buyers: A Guide to Purchasing Your First Home
It’s no secret that purchasing a home is one of the most important purchases in your life — and you can’t return it if you have buyer’s remorse.
Is now the right time? Consider where you see yourself in the next three to five years. Are you interested in a major career change that could take you out of state? While life is unpredictable, if you know major changes are coming, it may not be the right time to buy a home.
Can you afford it? This is a significant purchase where many buyers use most, if not all, of their savings as their down payment and for furnishing their home. Think about what you can afford each month, which includes interest rates, property tax, and homeowners association (depending on what you’re buying). Tools like mortgage calculators allow you to see how much house you can afford.
Do you qualify? Getting approved for an apartment is easier than a mortgage. Check your credit history to make sure all of your debt is paid off, nothing is late, or delinquent. Anything derogatory in your report can hurt your chances of getting approved.
What type of home do you want? Are you interested in a move-in-ready home that comes at a higher cost but doesn’t need work, or do you want a budget-friendly fixer-upper where you can take on overtime projects yourself? Many buyers enjoy taking on projects where they can save and find affordable companies for large repairs.
Start Saving Now
When you’re ready to buy a home, start saving. With a lot of costs that go into buying a home, it’s essential to ensure you have all your finances in order. What are you saving money for?
- Down payment: Most down payments for first-time buyers can be around three percent.
- Closing costs: While the buyer and seller pay the closing costs, the buyer pays most of it. Typically, you can expect to pay between two and six percent of the loan amount. This is in addition to your down payment.
- Move-in expenses: This includes moving costs, fixing anything that unexpectedly breaks down (hot water tank, air conditioner, etc.), furniture, painting, and more.
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As your trusted financial resource for buying your next home, check out our website and content for additional resources. Buying a home is an exciting time, and it’s our goal that you have all the information needed to make the right financial decisions.