5 Practical Tips for Buying a First Home

Feeling overwhelmed when it comes to buying your first home is an understatement. There are a lot of things to consider and a lot of research to do to find the perfect home for your family. Fortunately, this blog post looks at five areas for you to focus on that will make buying your first home a breeze!

1. Start By Getting Pre Approved For A Home Loan

Getting pre approved for your mortgage will save you a ton of time and effort. You won’t waste time falling in love with houses that aren’t even in your budget. Being pre approved means a lender has already reviewed your financial information and let you know how much they’re willing to lend you.

Also when it comes to getting a pre-approved loan, don’t jump at the first offer. Make sure you look around for the best deal and lowest interest rates. Make sure you ask about things like processing fees, points, and junk fees. Before signing off on a loan, you should be 100% sure there aren’t any hidden costs that will sneak up on you.

2. Separate Your Needs From Ideal Features

Finding the perfect home for your family starts with getting clear on what you need versus what you want. Each style of home (townhouse, condo, traditional home, etc.) all have their pros and cons. You won’t know what’s best suited for you until you get clear on your homeownership goals. Are you looking for a place that needs fixing up to sell within 5-10 years? Are you looking for a property to pass down to your children? You’ll need to ask yourself tough questions to truly find the best home for you.

When getting clear on what you need in a home, make sure you separate needs from things that are considered ideal. Granite countertops, built in pools and other fancy accessories are secondary to your actual needs such as the quality of the neighborhood for your kids and how good the school system in the area is. Planning what you want out of your house before making a purchase is the best way to avoid buyers remorse.

3. Don’t Try And Time The Market

Timing the market never works. There’s no inside tip or mysterious signals that will help you find the best time to buy. The reality is, real estate is cyclical. You’ll go crazy trying to time the market and may even end up missing out on some good opportunities. There’s no such thing as waiting for the perfect time.

4. Living In A Bigger Home Isn’t Always The Best Choice

Remember that your home is only going to up in value as much as the other houses on the block. If you pay an extra 100,000 than your neighbors for a bigger home, you’re limiting the amount of appreciation you can benefit from. If having a big house is important to you and high on your needs list, then there’s nothing wrong with pulling the trigger. Just remember that bigger houses require more effort to clean, more money to heat and cool and generally more effort to maintain.

5. Get Familiar With The Neighborhood Before Making A Final Decision

Before you make a final decision, you should get familiar with your potential new neighborhood. Drive around and see what’s happening. Find out basic stuff like how far of a walk it is from your potential home to the store and what’s around your home. Look to see if lots of people are walking around and how well your potential neighbors treat their yards. If you don’t have kids, then you want to pay attention to what school zone your potential home is in. Simply living in a bad school district can affect your home’s value by as much as 20%.

All in all, a knowledgeable real estate agent will be your best friend when looking for a new home. Getting prepared ahead of time will save you a ton of effort when looking for your first home. Getting clear on your needs and distinguishing them from your wants will help your family find the perfect home. Good luck!