Purchasing a home for the first time is an eye-opening and valuable experience. First-time homebuyers need to have as much knowledge as possible before signing for a home, whether it is a custom-built new home or existing construction. Parks Realty has compiled a list of important advice just for first-time homebuyers so that you can avoid making some common mistakes.
Research All Mortgage Options
If you have never dealt with a lender before, learning about mortgages can quickly become an overwhelming endeavor. The key to becoming a mortgage master is to carefully choose the right lender, which requires additional research of its own.
Once you have found a lender you are comfortable with, ask any questions you need to feel completely comfortable with your loan agreement.
Keep in mind, purchasing a home is a very large undertaking. There are plenty of options tailored specifically to first-time buyers that you probably haven’t heard of. Get to know your lender and don’t move forward until you completely understand your loan.
Plan for the Long-Term
The best way to plan for the long term is to ask yourself some questions, such as:
- Will I be getting married?
- Will I be having kids soon?
- Will I be needing to take care of an elderly relative?
- Am I in a situation where I can benefit from selling this house in a few years?
- Who would be most interested in buying this house from me?
These are just a few key questions a first-time homebuyer needs to consider before purchasing a home. You want to get an idea of where you will be in the next few years to be able to most effectively plan for the long run.
Factor In All Monthly Expenses
Aside from the usual monthly payments associated with loan repayment, there are other recurring expenses that need to be factored into your budget. Such other expenses include, but are not limited to:
- Commuting costs
- Planned upgrades
- Homeowner’s association fees
Owning a home is very different from renting in a lot of ways, one being increased monthly cost. Make sure to keep these additional expenses in mind when creating your initial budget.
Research All Aspects of the Neighborhood
What are you looking for in a neighborhood? If you are married with children, you might start by looking at the quality of (and proximity to) the local schools. This might differ from someone who is single that recently moved to a new city.
No matter your situation, you’ll be doing yourself a massive favor by conducting thorough research of the area you wish to live.
Don’t Be Afraid to Ask Questions
When it’s all said and done, the whole home buying process is very complicated and can sometimes become very overwhelming. Make sure everyone you work with – from lenders to real estate agents to sellers – is the right choice for you and your situation.
Effective communication is crucial to obtaining all the essential knowledge you need to knock your first home purchase out of the park!