6 Valuable Lessons for the First Time Home Buyer
Finding an affordable home that meets all prerequisites is not easy, especially for first time home buyers. Starting from finding the perfect location, to selecting one of the many programs for first time home buyers, the journey has many challenges. Moreover, in the excitement of hunting for a new home, many first time home buyers end up committing rookie mistakes. If you are planning to buy a house, we present seven valuable lessons that can help you avoid the pitfalls and find the right apartment without having to run from pillar to post . Take a look.
1. Save for the Downpayment, AND Closing Costs
The earlier you start saving for the costs associated with purchasing a home the more prepared you will be. Many people make the mistake of procrastinating the planning for a down payment until they begin their house hunt, but then are surprised at the upfront costs necessary such as earnest money and appraisal. It is advisable to save enough to cover at least 5 percent of your future home’s value at minimum. More diligent savers that are able to save up for a 20% down payment also get the additional benefit of avoiding mortgage insurance (depending on program). Remember, you can also receive help from family/friends in the form of a “gift”, but there are certain rules around gift funds so speak to one of our mortgage experts first.
2. Take Your Time
Make sure you don’t rush into a decision when buying a property. There are so many factors to consider, such as how long you will be in the home, what school(s) will your kid(s) go to, how will it affect your commute to work, and so much more. Take your time and search different neighborhoods and localities before making your final decision. Buying a property is a major investment, so make sure you consider all the essential factors before signing on the dotted line.
3. Conduct a Thorough Inspection
It is inadvisable to blindly rely on the report of a property inspector. Make sure you personally check every vital element during the inspection. If you skip inspecting the property on your own, it may lead to regrets in the future. A small investment of time and money now could save you thousands and months in the future.
4. Dedicate an Emergency Fund
As a first time home buyer, you might need to bear a lot of additional expenses, such as utility bills, home repairs, and lawn maintenance, which may make a notable difference to the total cost of ownership. Building an emergency fund helps you manage such unforeseen expenses and reduces the stress involved in the home buying process.
5. Ensure a Healthy Credit Score
If you want to qualify for a home loan program for first time home buyers, make sure you have a healthy credit score. There are various measures you can take to improve or rehabilitate your credit score. The avenues include paying off outstanding debts, paying bills on time, keeping a variety of accounts, and starting new lines of credit. One of our mortgage experts can help you evaluate your score and what you can improve upon to be be ready to purchase a home in the future.
6. Get an Expert’s Opinion
When looking for a property, you may ignore or miss certain factors that can result in significant expenses in the future. There may be instances when you may instantly fall in love with a house and overlook the basics. To avoid such a situation, make sure that you get an expert’s opinion on your choice, as they may point out the problems invisible to your eyes.
Buying a home can be an exciting and wonderful experience, provided you consider every key aspect. Educate and prepare yourself beforehand to ensure that you don’t have regrets in future. In addition, you also need thorough information on the programs for first time home buyers. To learn more about the programs for first time home buyer in Texas, get in touch with the experts at Service First Mortgage - The Davidson Group for a no-obligation consultation.