Being a first-time home buyer can be an exciting time. It can also be a stressful time if you are not prepared. Purchasing a home is one of the most eventful decisions a person can ever make. It is beneficial to know what to expect, what are some best practices, and how you can put yourself in the best position to purchase the home of your dreams. Below is a checklist of important items you should consider in preparation of purchasing your first home.
Determine your budget:
Determine how much money you can afford to spend on a home. Consider your income, expenses, and other financial obligations. Use a mortgage calculator to estimate your monthly payments.
Check your credit score:
Your credit score will determine your eligibility for a mortgage and the interest rate you'll receive. Make sure to check your credit score and credit report, and address any issues before applying for a mortgage.
Save for a down payment:
A down payment is typically required when buying a home, and it's important to have the funds set aside. Aim for a down payment of at least 20% of the home's purchase price to avoid private mortgage insurance (PMI).
Prepare necessary documents:
When applying for a mortgage, you'll need to provide various documents, such as income statements, bank statements, and tax returns. Gather these documents in advance to expedite the process.
Get pre-approved for a mortgage:
This will give you an idea of how much you can afford to spend on a home. This statement indicates how much a lender would be willing to lend you towards your purchase. It can help you move quickly when you find the right property.
Find a real estate agent (ME :-) ):
A real estate agent can help you find homes that meet your criteria, negotiate the price and terms of the sale, and guide you throughout the whole home-buying process.
Determine your preferences:
What features are most important to you in a home? Make a list of your "must-haves" and "nice-to-haves" to help narrow your search. Research the neighborhoods you're interested in; consider factors like safety, schools, amenities, and commute times.
Tour homes:
Schedule tours of homes that meet your criteria. Take notes and pictures to help you remember each property and how you felt while you were inside each property.
Make an offer:
If you've found a home you love, make an offer that's within your budget and takes into consideration a home inspection, necessary repairs, or upgrades.
Close:
Once your offer has been accepted, work with your real estate agent and mortgage lender to finalize the sale and take possession of your new home.
By having your finances in order and researching your options, you'll be better prepared to make an informed decision when it comes to buying your first home. Take your time and make sure you're comfortable with each step of the process. I look forward to the opportunity to assist you with your home and real estate ownership goals!
Please feel free to contact me if you should have any questions. Be sure to follow me on Instagram and TikTok at @Keys2Memories for the latest real estate news and helpful tips. And, please feel free to share this article!
LaShawn Freeman, Douglas Elliman Real Estate Agent
Unlocking new memories, one door at a time.
M: 917.254.3313 / E: lashawn.freeman@elliman.com
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