Hello World! Welcome Friends! Buying your first house is an exciting time, but it can also feel overwhelming and confusing. The process of buying your first home can take several months. It involves lots of little steps, but having a general overview of the process helps you know what to anticipate.
Choosing reliable, knowledgeable professionals along the way is crucial to getting the support you need to make the process smoother. Keep reading to explore the basic steps of buying a first home.
Assess Your Situation
Knowing your current financial situation helps you decide if you can afford a home and how much of a home you can afford. Look at your current budget, particularly your rent payment, to get an idea of what you can afford. Look for areas you can cut back in the budget for a bigger cushion. Calculate the amount you have available for a down payment. You typically don’t need the traditional 20% down payment. The median down payment for first-time homebuyers is 7% of the purchase price.
Meet With Lenders
Have lenders assess your situation before you start looking for homes to ensure you qualify for a mortgage. You can also get an idea of how much you can borrow. Real estate representative Jennifer Jewell recommends getting preapproved for a mortgage when buying your first home. You can get pre-qualified for a mortgage, but a more comprehensive option is getting preapproved. A mortgage preapproval includes a credit check and other verified data to see if you would qualify for a loan. If preapproved, you can get a preapproval letter showing the terms and the amount you’re preapproved for. It’s not a guarantee that you’ll get the loan. If anything changes between preapproval and loan closing, you may lose the financing.
Find a Real Estate Agent
The next pro you need is an experienced real estate agent. A local expert with experience in first-time homebuyers is your best bet. A personality that clicks well with you makes the home-buying process easier. If you don’t feel comfortable talking to your agent, you can’t get the support and answers to your questions that you need to sail through the home-buying process.
Narrow Your Search
Think about what you need and want in your home. Your first house may be a compromise, especially if you’re on a tight budget. Prioritize the home features to identify the things it must have and the things that would be nice to have. Consider the location, size, yard, type of home, and style. Your agent can help you determine what features are feasible within your budget and the area where you want to live.
Make an Offer
You’ll likely look at lots of houses before you find the perfect first home for you. Once you do, your agent helps you write an offer and negotiate with the seller. You may need to adjust your price offer or the things you want from the seller to have your offer accepted. Your agent can guide you through those negotiations.
Buy Your First House
Buying your first house can seem daunting, but the process is easier when you know what to expect. Find professionals you can trust to help you with each step to make it easier. Once you find the perfect house, check out the rest of our blog for decorating and gardening tips to make it a home you love.
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