First-Time Home Buyer Tips
If you are thinking of buying a home, you will probably have a lot of questions. There are a few tips for first-time home buyers that you can use to make sure you get the best deal. Here are some of them:
Save early and often for the down payment
The best way to save early and often for the down payment when buying a first-time home is to plan ahead. Your first step is to make a budget. Make sure to include a monthly savings goal for the down payment.
Ideally, you should set aside a minimum of five percent of the purchase price of the home. A higher down payment lowers your loan costs, allowing you to pay less interest over the life of your mortgage.
You should also save money for closing costs, home inspection, and private mortgage insurance. These costs can add up to 3-6 percent of the purchase price of the home. To estimate your expenses, use an affordability calculator.
Buying a home is one of the largest purchases you will make. It will take time to build up the down payment and closing costs. Therefore, you should give yourself a year or more to save.
Find a real estate agent
If you’re looking to buy a home, you’ll want to get a real estate agent to help you find your perfect home. The right agent can help you negotiate the best deal on your new property, and they can also guide you through the process from escrow to closing.
When you’re looking for a real estate agent, you should try to find someone who is local and experienced. It’s also a good idea to look for an agent with a good reputation. You can check out an agent’s background online or on Yelp.
While finding a good real estate agent can take some time, it can also save you stress. Make sure to interview several agents before making a final decision.
If you have a family member or friend who is a realtor, you may be able to get some referrals. However, you should be aware that agents who are family members may not be the best fit for your needs.
Narrow down your needs list
If you are about to buy a new place to call home, a little planning goes a long way. Thankfully, there are sites like Zillow that can help you find your next pad or crib. Buying a house is an expensive endeavor. You want to make sure that you are getting a home that fits your budget, taste, and lifestyle. Luckily, there are sites like Zillow that provide a helpful unbiased guide to the best homes for you and your family. The site even provides a handy guide to the top neighborhoods in your area. For more specifics, you can also search for neighborhoods by neighborhood. Fortunately, the sites provide a convenient search function, where you can input criteria like zip code or price range. Having this information in hand will save you time, headaches, and even money.
Invest in a home warranty
Home warranties are a good investment for homebuyers. They can help cover unexpected repair bills that can be expensive. Having a warranty will also give you peace of mind.
Most newly constructed homes come with a warranty included in the price. A warranty for an older home can be useful too. However, you should be aware of the limitations.
Home warranty coverage can vary from state to state. For example, your policy may not cover appliances. It can be wise to shop around and compare plan options. You should also look at the service and warranty fees to ensure you get the best deal.
Another good option is to invest in a home seller warranty. When you purchase a home, you can ask the seller about their current home protection plan. The sellers should be able to tell you the amount of protection they have and which items are covered.
Get a home inspection
Getting a home inspection is a smart step to take when buying a new property. It will help you to identify any problems with the property and determine the number of repairs that need to be done. You will also have the chance to negotiate with the seller to make improvements or lower the price.
If a home inspector finds a significant problem with the home, you may have the option to back out of the sale. The inspector will inform you of any potential problems and can give you a bid on how much to fix the problems.
A good home inspection will reveal any serious or hazardous issues with the home. They will check for cracks in the foundation, sagging roofs, and even a leaky septic tank.