After months – maybe years – of preparation, you’ve decided to finally go for it and purchase your first home. Congratulations! This is a very exciting time for you, but it is important to never let the anticipation of being a first-time home buyer get in the way of making crucial decisions in the buying process. Although purchasing your first home is an amazing experience, it can also come with some challenges. With some tips and first-time buyer knowledge, the task can be less daunting and all the more exciting.
1. Determine your budget
The very first thing every first-time home buyer needs to determine is what he or she can afford. That will make your search significantly more effective. When calculating your budget, include all additional costs, such as insurance premiums, homeowners insurance, property taxes, HOA fees (if applicable), etc. Once you have determined your budget, you will know which homes are within your reach.
2. Determine where you stand with lenders
To make the buying process easier, know where you stand with lenders. If you have a credit score of 720 or above, you can shop around for a loan with the lowest interest rate. However, if you have a lower credit score, you may be restricted to higher rates. There are still many promising options available, but this could certainly increase your budget.
3. Consider cost-saving moves
As a first-time buyer, you want to get as much bang for your buck. There are several potentially cost-saving moves you may be interested in. Look for properties that are in foreclosure, or shop in neighborhoods with a high number of properties for sale to get the highest value for your dollar.