Buying Your First Home The Right Way. Is commitment to navigate the complex purchase process. Here’s a look at how to do it right and save money, possibly thousands of dollars, in the process. The first step: Plan to stay.
Short-term home ownership rarely makes sense.
Buying Your First Home The Right Way
“When you buy a home, you should know you’re going to stay for a minimum of seven years or longer is better,”. “If you try to do everything you need to do to make that house yours. And then you turn around and sell it after three years! You’re not going to break even and you’re at risk of the market.”
Try Bankrate’s buy-or-rent calculator.
Get Pre-approved for a Mortgage
If you need a loan to buy the home, a real estate agent will want you to talk with a mortgage professional.
A good Realtor will ask you what your criteria is and set up a search through the MLS for you. But a good Realtor is also going to say, ‘The next step is for you to contact a mortgage professional and make sure you’re preapproved.'”
A mortgage preapproval makes your purchase offer more credible. Even more important, when you get a preapproval the lender will tell you how much you can afford to borrow. So a mortgage preapproval is a budgeting tool that lets you know how much you can afford to spend on a home. It prevents you from overspending and narrows down the price range of houses you look at.
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Time Your Purchase Well
Timing is a crucial element in homebuyer readiness. A time frame that’s too long doesn’t make sense, and neither does a timetable that’s too short. For example, if your lease doesn’t expire for many months or you need to move within 30 days, buying a home might not be practical for you right now.
The ideal situation is to be ready to buy and be able to wait, especially if sellers are fielding multiple offers.
You can’t be too hesitant, and you “can’t only be ready and raring to go because there will be disappointments. That’s just how the market is right now. You have to go into it with realistic expectations.”
Always Save for a Variety of Costs
If you’re a first-time home buyer, you have to save for a down payment. If you own a house and you’re selling it, the equity you have can be used as a down payment. Regardless, you’ll need to have some savings.
That’s because you’ll need an emergency fund, moving expenses and home maintenance costs when you budget for a home purchase.
“People forget that there is a lot of maintenance with owning a home, especially if you’ve been used to renting. From a financial perspective, (it’s important to) make sure that even if you’re emotionally ready or excited to buy, that you have nest eggs set up as well.
Being prepared when looking to buy a your first home is very important. Don’t take anything for granted. Do your house inspection(s) once you find that home.
Article Topic: Buying Your First Home The Right Way