Every first-time home buyer is a little nervous, but it's not as difficult as it seems.
Buying your first home should be exciting rather than overwhelming.
For some tips, tricks, and issues to consider before you purchase your first house, keep reading.
1.
Knowing What You Can Afford The first step to purchasing a home is gathering together your personal finances and knowing what you can afford in the housing market.
Meanwhile, buying a house boils down to two major financial commitments - these are the down payment that you can afford to lay out up front and the monthly mortgage payment that you are financially comfortable making.
To find out what you can truly afford, talk to your local bank or check online for mortgage calculators that will take into consideration your gross annual income, property taxes, debt payments, amortization and anticipated mortgage rate.
2.
What a Bigger Down Payment Means A larger down payment means you're more likely to qualify for a loan and be able to purchase the home that you want, not the one that you can afford.
It can also translate to lower overall interest payments and not having to pay for private mortgage insurance, both of which are significant savings.
While you should still continue to pay down high-interest debt, the sooner you start saving for your down payment, the faster you'll be in the door.
3.
Getting Pre-Approved Did you know that you can get pre-approved for a mortgage from most banks? Most lenders offer potential buyers pre-approved mortgage certificates that let them shop for a home with confidence, knowing what they can and can't afford.
If you're a first time home buyer, most real estate agents will ask that you get pre-approved for a mortgage before they'll begin to work with you.
Also, by having your financing already in place, you put yourself in a more competitive bidding position when it comes to making an offer on a home.
It helps the seller to know you are a more serious buyer when you have been pre-approved for a loan on their home.
4.
Know What You're Looking For By having a focused search effort, you can narrow your choices and increase your chances of finding the home you really want.
Whether it's closet space, a dream kitchen or extra bedrooms for the kids, knowing what you want will help you and your realtor track down the right house for you.
When listing location options and home features, take into consideration public transit, school districts, nearby amenities, and the overall condition of the neighborhood.