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Top Tips from the Pros For First-Time Home Buyers
Tips for Buying Your First Home
Buying your first home is an important life milestone. The process requires your patience, dedication, and financial commitment. You must think differently and consider factors that may not have been important before now.
The good news is that our REALTORS® know what it takes to find a home that's right for your family. When it's time to search for your new home, we'll help you through the process. Our Real Estate Guide for Buying Your First Home provides a to-do list to help you prepare for your home buying experience.
Build Your Bank Account
You should stop spending and start saving long before you begin touring homes for sale. You'll need the money when you close on your home and cash to cover a wave of home-related expenses.
- Down Payment
Traditionally, home buyers put down 20 percent of the sale price. A higher down payment will be even more beneficial in the long-run. It will lower your finance costs and your monthly payment. - Closing Costs
The day you sign your closing documents, you'll pay title fees, taxes, homeowners and mortgage insurance, and other expenses that could add 2 to 5% to the home sale amount. - Ongoing Home Expenses
You will need a financial cushion to cover recurring home operating costs, unanticipated repairs, and planned remodels. You'll have a home full of appliances, home systems, a roof, and a yard to maintain. You must also pay for trash services, water and sewage fees, and higher energy costs.
Start Thinking Like a Buyer Instead of a Renter
If you have no idea about the kind of home you want, look at home listings, attend open houses, and drive by homes for sale. Even if you're not quite ready to buy, you can get an idea of communities, home prices, amenities, and how much you're willing to pay for what's available.
Check out the Local Schools
If you have children or plan to someday, you must make sure you're in a thriving school district. Visit a non-profit school rating website like Greatschools.org to see community school ratings.
Determine How Much You Can Afford
The FHA Mortgage Calculator and similar online apps and websites make it easy to calculate monthly mortgage costs. You input the mortgage amount, down payment, terms, rates, and other factors and the calculator shows you the monthly payment and income you need to afford it.
Get Your Credit in Order
You can pay the three major credit bureaus for a copy of your credit reports, but you can access them for free at Annualcreditreport.com. Viewing your reports allows you to uncover problems that may make it difficult to get your home financed. You can eliminate inaccurate information and contact debtors to correct, resolve, or dispute problematic credit entries.
Get Pre-approved
When you find the home of your dreams, your pre-approval letter will save some delays. Your mortgage company will review your debt, credit rating, and financial standing to determine if you're mortgage-worthy. When they issue an approval letter, it tells potential home sellers that you're ready to buy.
Consider Mortgage Assistance Programs
You may qualify for mortgage assistance from Veterans Administration, HUD, and other government programs. They offer low mortgage rates, minimal down payments, and reduced qualifications.
Let Us Help You Find Your First Home
If you're ready to buy your first Gulf Coast of Florida home, you need a realtor to provide professional guidance. Contact Wagner Realty if you're buying or selling a home, or simply want information about the communities we serve.
