Services like No1 Property Guide House and Land are vital tools for first time homebuyers that may not be very acquainted with the practical, legal, and financial aspects of buying a home. If you’re completely in the dark about buying a home for the first time, follow this helpful list of tips to shed light on the mysteries of that glorious first home purchase. These tips are designed to give first time buyers a unique look at the practical things that will help them get the best deal.
- Save as much as you can for the down payment
First time homebuyers are best served by putting money down on the first home purchase, to the tune of as much as they can afford. First time home buyers now qualify for much lower down payments on homes, and this is a blessing for first time buyers that don’t have much more than 3-5% for down payments. Some programs even allow for a zero down payment. Despite this, you’ll be better off financially in the long run if you pay as much as you can on a down payment.
- Shop for a no down payment program
The previous tip is only for first time buyers who are capable of making a substantial down payment. For first time buyers that need a zero deposit purchase, this is a perfectly fine, and even advisable, option over renting an apartment or home endlessly. If you don’t have the money for a down payment, don’t worry. There are programs that can help you.
- Consult with experts to find out your price range
Your income and the income of anyone else in your life will help determine how much your budget can afford to spare for a mortgage payment. Financial experts or the agency you use to purchase your first home will be able to sit down with you and analyze your income and resources to determine how much home first time buyers can afford to buy.
- Check your credit
Regularly checking credit rating and reports so that you can correct any errors is important even if you’re not buying a home. If you are buying a home, it’s one of the first things you should do before doing anything else. Get your credit rating and have it handy to determine if you have a high enough rating to afford a first time. The great news for those with low credit is that you can often still afford to buy a first home instead of renting one. You’ll just pay a bit more in interest.
- Get pre-approved for a mortgage
Getting pre-approved can provide peace of mind during the stressful time when you’re wondering whether or not you will be approved for a home. With a pre-approval, you’re not tied down to any obligations, but you’ll get an idea of if you’ll be approved for help with a first time home purchase.
- Pick a neighborhood you can live in
All neighborhoods have their pros and cons. In general, though, you want to be in a neighborhood with active communities, safe homes, and good schools for your children. Better neighborhoods will also have higher home values, so it might be more to buy your first home there, but you can also later sell it or rent it out for more money. Make sure that your home is in a good neighborhood that’s satisfactory to you and your family.
- Budget carefully
The agency you use to buy your first home will inevitably have financial experts that will help you sit down and budget your money out in the near future. If you have an income that fluctuates, this can be particularly tricky. You need to be realistic about your monthly expenses and even use apps to help you determine how much you can afford to spend on your first home.
Buying your first home will be one of the most exciting, worthwhile things you ever do in your life. Make sure the experience goes smoothly by using these 7 simple tips. You’ll be grateful you followed a strategy later on.