If you're about to buy your first home, you're likely overwhelmed with questions. With so many homes for sale throughout your area, how do you know which one to choose? How do you know how much you can afford? What features do you require? It's time to answer these questions so that you're prepared to buy your first home.
A house is most likely the most expensive purchase you'll ever make. Most people will require a home loan, also known as a mortgage, in order to purchase their first home. To qualified for a mortgage, you'll need good credit, a reliable source of income and a large amount of cash available for your down payment and closing costs. It's wise to seek out a home loan before you even begin looking at houses so you know what you can afford. The lender will use all of your financial information to provide you with the maximum amount of money you can spend on a home.
If possible, seek out pre-approval before you go house shopping. Once you've been approved, it's time to make a list of exactly what you want in a home. At first, make one list of everything you'd love to have in your new home. Next, sort through the list and make two new lists: needs and wants. Your needs are the bare requirements that a home must possess. Your wants are extra features that will be nice, but not necessarily deal breakers. Examples of needs are the number of bathrooms and bedrooms, the location of the home and proximity to your office. You may also decide that a large backyard is a need. Examples of wants are manicured landscapes, a pool and décor. Your lists will be unique to you.
Now it's time to start house hunting. There are plenty of homes for sale to explore, so take your time and be patient. It's advised that you work with a real estate agent who will show you all of the homes they're trying to sell. You don't have to settle for the first real estate agent you find. Instead, interview real estate agents to find the right one. You should feel comfortable with them and they should understand exactly what you're looking for in a home.
Before you're able to make a purchase, you'll need to purchase homeowners insurance. This is typically a requirement among lenders. Make sure that your homeowners insurance is within your budget and covers the types of disasters that are common in your area.