Are you hoping to buy your first home this year? Much has been said about the difficulty of getting on the housing ladder, and it’s true that buying a home is more difficult for younger people than it has been historically.
However, this doesn’t mean that it’s impossible. All that the average first-time homebuyer needs are some tips, and they’ll be better equipped to buy their first home.
In this guide, we’re going to give you some compelling home buying tips that can help you buy your first property with the least amount of stress. Are you ready to learn more and start planning for your first home? Then read on!
1. Start Saving As Soon As You Can
There’s no way around it: buying a home is an expensive business. While the average price of a home will vary a lot from place to place, you’re almost always going to need hundreds of thousands of dollars for a great home.
This means that you should start saving early. Squirrel away as much money per month as you can afford to, and keep it in a savings account so that you can get interest on it, too.
You’ll need money for a down payment, typically 10-15 percent of the total mortgage. You’ll need money to move all of your stuff into your new home. You’ll also need money for the setup costs after you’ve moved in for little things that you haven’t considered (there’s always something).
2. Budget in Advance
So, you’re going to save for a down payment, but how much will you need for one? It all depends on how much you can afford.
We’d recommend that you’re cautious when buying your first home, as mortgage payments can get expensive. Take a look at how much a mortgage would cost per month from various providers, and question whether you can afford it.
You should also take a look around for specialist schemes that may be able to help you, such as a home loans for doctors program.
3. What Do You Need in a Home?
Unless you’ve got a whole lot of cash, you’re going to need to compromise on some things. However, this doesn’t mean that you can’t find an incredible home that gives you almost everything you want.
Think carefully about what you want from your home. How many bedrooms do you need? Would you like a garage or a pool?
Knowing what you need and want in advance can help you set a budget and know the ballpark price that you’re going to have to pay. Then, if you need to reduce your budget, you can look for more modest homes.
4. Get Preapproved for a Mortgage
Before you start looking for houses and making offers, you’d be wise to get preapproved for a mortgage. This means that the lender agrees, on a conditional basis, to lend you the amount of money that you’re looking for.
Why does this help you? Well, it shows the seller that you’re serious about buying the home. If you end up in a bidding war with another prospective buyer, this might make the difference.
It can also make the buying process a little easier.
If you want to get preapproved, you’ll need to demonstrate proof of income to the lender and give them a whole range of other documentation, too. While it’s a fairly involved process, it’s quite straightforward and is well worth doing.
5. Find the Right Estate Agent
When you’re shopping for your home, you want a great estate agent by your side. You need to make a smart decision while you’re choosing your realtor.
To this end, when you’re looking for a real estate agent to help you, ask them about their experience and their knowledge of the area. You should also ask them how much experience they have with helping first-time homebuyers get on the property ladder, as this comes with its own set of challenges.
6. Go on a Lot of Viewings
Viewings can tell you a whole lot about the quality of home that you can expect in the area, even if it’s not the actual home that you end up buying. It can also shed light on certain features that you’d like that you hadn’t previously thought about. It also gives you an opportunity to check out the area, which is invaluable.
Open houses are also well worth visiting for the same reasons.
Keep going on home viewings until you’ve found the home that you’ve been dreaming about. Your dream home is waiting out there for you, so don’t rest until you find it.
7. Don’t Delay When You Find a Home You Love
When you find a home that you love, that has everything you’re looking for, and that is within your budget, don’t delay. You need to strike fast and make an offer fast.
The longer you delay, the more likely you are to lose out to another prospective buyer. This is where having preapproval comes in very handy, as it can make the process faster and easier.
This isn’t to say that it’s not worth negotiating. Simply that you should show your interest right away.
Put These Home Buying Tips to Good Use
If you put our home buying tips into action, you’ll have a much better chance of securing a great home that you’ll be happy to live in for years to come. Make the most of your viewings, budget smartly, and strike fast when you’ve found your dream house.
For more informative and helpful articles like this one, check out the rest of our blog!