So, you’re in a better spot financially and you’re thinking about investing in a new home. It’s a great idea, considering your property should accrue value and you won’t be paying a landlord most of your hard-earned income anymore.
That said, do you know how to buy your first home? We’re going to give you a breakdown of the process today, giving you a decent idea of how to buy a house, how to get a mortgage, and more information for first-time buyers.
Let’s get started.
1. Choose a Lender
Finding a lender doesn’t have to be very difficult. All banks and lenders will offer slightly different benefits, but most of them will wind up being pretty close to one another.
Try to find the lender that will offer you the lowest interest rate and APR, then give them a call to see if they’d be a good company to work with.
2. Get Pre-Approved
Preapproval is something that lets you know that you can get a loan from a bank. It tells you how much the bank would loan you, giving you a lot of insight into what sort of house you should be looking for.
Just reach out to the lender that you’ve chosen, and they should be able to lead you the rest of the way.
3. Save for a Down Payment
The more money you have to put down on a house, the lower your interest rate will be. Further, the less money you’ll have to pay on your mortgage each month.
Try to aim for 10 to 20 percent of the cost of the loan, although there might be benefits for first-time buyers.
4. Find a Realtor
Realtors help you a great deal. It’s possible to buy a home without one, but you might lose a lot of money if you do. The realtor is there to help get you the best deal on your home.
Further, they can help you look for homes that you might not find otherwise.
5. Find a Mortgage Broker
The mortgage broker and the realtor will probably have some connection. That said, you can get help on mortgages from whomever you choose to work with.
Don’t sell yourself short if the realtor’s broker isn’t someone that you want to work with.
6. Don’t Rule Out Fixer-Uppers
Houses that need a little work are diamonds in the rough. They’re great opportunities for you to increase the value of the property in a short amount of time.
When you’re done fixing up the property, you can always refinance and get that value back into your pocket.
7. Run an Inspection
Before you even think about closing on a home, have an inspection done. An inspection will tell you if the house is being marketed as it actually is, or if you’re being ripped off.
The things you can’t see are the ones that will cost you the most, so it’s best to have a professional come look at things.
8. Take a Moment
Everyone in the situation wants you to follow through and buy the home. The seller, the realtor, the broker, and whoever else you’ve hired.
Take a moment before you close to ask yourself if this is what you want.
9. Close The Deal
When you’re confident with the decision, it’s time to close the deal and buy the home. The rest is up to you, but know that this is a massive financial accomplishment and a big step toward your future.
Congratulations, you’re a new homeowner!
Want to Know More About How to Buy Your First Home?
Knowing how to buy your first home is a big step toward you making the changes to get to a point where you’re ready to take that step. We’re here to help you understand the process and find ways to save up for your purchase.
Explore our site for more insight into homeowning, saving, budgeting, and more.
