Useful Tips for First-Time Home Buyers

In most peoples’ lives, there are events which they would consider to go above and beyond in importance when compared to most other things. In this category, things like wedding celebrations, first car purchases, first jobs and first home purchases can all be found. Just like most of the things in the same category, buying a home requires a lot of preparation, and the more details you get right, the more satisfied you’ll be, and this guide is here to help.

Finances first

The first thing you should take into consideration when buying your new home is the specifics of your financials. Buying a home can be taxing on both the mind and the wallet, which is why you need to be well-prepared. Your financial stability and eligibility for the mortgage will be dictated by your credit score, existing debts, income and your ability to meet the down payment requirements. Luckily, for first-time home buyers, down payments can be as small as 3%, but there are other factors at play as well, such as closing costs and the costs of moving in. The reason why debt, credit score and mortgage costs are considered is that a home loan and a refinance home loan are investments for your bank, which will require proof of your financial stability. It’s advisable you pay off any existing debts and keep your credit score in check before applying for a mortgage.

Get pre-approved

A pre-approval letter from a lender can show real estate agents and home sellers that you mean business and give you an edge over other home buyers. It is essentially the lender’s guarantee that they have agreed to lend you a specific amount under specific terms. Upon application, the lender will consider your income, debt and assets before they agree, but don’t be afraid to shop around and compare rates and terms from different lenders in order to find the best deal, or even apply for different loans at the same time, as this will not affect your credit score as long as it is done in a set timeframe.

Make a list of must-haves

When you're looking for a home, it's important to make a list of must-haves. This will help you narrow down your search and focus on the homes that meet your needs. Some common must-haves for first-time home buyers include location, number of bedrooms, and square footage. These traits will influence the cost in their own way, so prioritisation is key. The types of homes include:

• Single-family homes

• Duplexes – two homes, with two entrances and one common wall

• Condominiums – comprised of multiple units, only the interior of which is owned by the owner, with shared amenities such as parking lots, gardens or pools

• Townhomes – multistory buildings with multiple units and shared amenities

When it comes to location, you should consider how close your home will be to essential facilities such as schools, pedestrian zones and parking zones.

Find the right real estate agent

Hiring a real estate agent can be extremely helpful when you're a first-time home buyer. A real estate agent can help you navigate the process, find homes that meet your needs and negotiate on your behalf. In order to find the best one for you, try to get referrals from others, request references during the interviewing phase and ask them about their experience with first-time home buyers.

I is for inspection

Before you make an offer on a home, it's important to get a home inspection. A home inspector will look for any potential problems or issues with the home, such as structural damage or mould. This information can help you make an informed decision about whether or not to move forward with the purchase.

Close the deal

Once you’ve found the perfect home for you, it’s time to sign the paperwork and close the deal, but be sure to enlist the help of a real estate attorney to make sure everything goes according to plan.

In conclusion, buying a home for the first time can be a daunting task, but with the right preparation and guidance, it can be a smooth and enjoyable experience. By getting pre-approved for a mortgage, knowing the limits of your budget, knowing what you want and finding the right professionals to assist you, you can guarantee yourself a pleasant home-buying experience.

Guest Contributor: Diana Smith