What Should You Know As a First Time Home Buyer?

By Bob Jones May 17, 2023

what should you know as a first time home buyer

Purchase of a home is one of the biggest financial decisions and investments you’ll ever make, so it is vital to seek professional advice throughout the process. First-time home buyers have numerous resources available to them including real estate agents, mortgage brokers and financial advisers as well as first-time buyer programs with lower down payment requirements and closing cost assistance options available to them.

Many home buyers may be unaware of all the steps required for buying a house, such as obtaining pre-approval for a mortgage loan, clearing credit records and creating savings plans, as well as determining their monthly payments. Although these steps can be daunting at times, they shouldn’t discourage you from fulfilling your dreams; professional guidance early in the process could save time, money and stress in the long run.

First-time home buyers should also make an effort to become familiar with their desired neighborhoods before making a commitment. By visiting at various times of day and speaking to residents, first-time buyers can gain a better sense of what life might be like living there – such as safety concerns. Many properties now feature 3-D or video tours online for first-time buyers who may not be able to tour homes personally in person. It is strongly suggested that first-time homebuyers attend open houses with their agent in order to gain real insight into each space!

First-time home buyers frequently make the mistake of underestimating how much home they can afford. Lenders provide estimates based on debt load and income as well as loan types available. Many buyers assume they can only afford a home of $300,000. But in reality lenders may approve them for lower amounts depending on factors like their credit score.

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Closing costs usually account for 4-6% of the purchase price of a home and include lender fees, inspection and adjustment costs, title insurance premiums, surveys fees, taxes and credit report charges. Please consult with your Realtor on how best to negotiate these expenses with sellers.

Importantly, first-time home buyers need to understand that they may not always find their ideal property right away. In a competitive market with low inventory levels, multiple offers may be made on one property and only one party may ultimately purchase it. Furthermore, home inspections may reveal costly problems that must be repaired before sellers will accept an offer. Nonetheless, be patient as your search continues – sooner or later you’ll find your dream home!

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