Are you ready to dive into home ownership? Taking these important steps will get you well on your way to buying your first home!
Preparing For Your First Home Hunt
- Enroll in a class
There are numerous first time homebuyer classes you can take and many of them are online courses. These can be a huge asset to someone looking to purchase for the first time, as they offer vital real estate information, important budgeting tips, etc.
Save your money!
Saving money is a hugely important step towards home ownership. Potential homebuyers need to save as much money as they possibly can before taking the plunge. Minimum down payments may be as low as 5%, however, the more money put down towards the home, the better. The more money you put down, the better the borrowing terms will be. If you can manage to save enough to put 20% down, you will save even more in borrowing costs as you won’t need to purchase private mortgage insurance (PMI).
- Search for the perfect agent
Finding the perfect agent for you is crucial. Ask your family and friends for recommendations on anyone that they used before and were happy with. It’s also a good idea to search online for a local trusted agent. A good Real Estate agent will be an expert in the area you are looking to purchase in. An agent should know how much properties are worth and will guide you smoothly through the purchasing process. They will be responsible for helping you determine a good offer for a property and they will present that offer to the seller’s agent. A Realtor should be readily available to answer any questions that you might have and to ensure your experience goes smoothly.
Know your mortgage options
There are so many mortgage options available that it can be truly overwhelming. If you are able to save up 20% for a conventional loan that is fantastic. If not, check out programs like Fannie Mae or Freddie Mac which accept as low as 3% down. There are also FHA loans available which require 3.5% down. If you quality for a Veteran Affairs (VA) loan, you many not need a down payment at all. Not only do you need to determine what loan is right for you, it’s so important to shop around! Getting a good interest rate can save you thousands of dollars.