First time home buying can be a scary experience, especially if you are stepping into the real estate arena for the first time ever.
Luckily, we have some advice for all you first-time homebuyers!
- If you can’t afford the home, don’t buy it.
- If your job security is in question, it’s probably not best to buy right now.
- Getting a mortgage approval isn't always easy. Start by actively managing your credit, and shoot for an excellent score.
- For financial security, consider buying a house for 20% less than the amount the bank is willing to lend.
- Don’t purchase a home blindly. Research the neighborhood, get advice from others, and consider the pros and cons.
- Avoid creative financing: buy properties with a traditional 15- or 30-year loan. Sleep soundly knowing your mortgage payment will be the same each month.
- Always put down 20% of the purchase price.
- Keep great financial records, and be patient throughout the process.
- Don’t overpay for a house you can’t really afford in hopes of market appreciation making up the difference.
- Less is more. A smaller, practical, easy-to-maintain house is the new mansion!
- Plan to stay in your home at least five years. If you can’t commit to five years it might be best forgo homeownership and keep renting until you are ready to settle.
- Budget for all the costs of homeownership — not just the monthly mortgage payment. Be sure you have the funds for property taxes, insurance, upkeep, and even an emergency repair fund.