Top Tips for First-Time Homebuyers
So you're finally ready to take the plunge and buy a house. Congratulations! Buying a house is a huge accomplishment, and it's also one of the most exciting—and stressful—times in your life. There are a lot of moving parts to the home-buying process, and it can be tough to keep everything straight. Fortunately, we're here to help. Check out our top tips for first-time homebuyers below.
TOP TIPS:
1. Get preapproved for a mortgage.
The first step in the home-buying process is to get preapproved for a mortgage. This will give you a good idea of how much house you can afford and will help streamline the home-buying process later on. When you're preapproved, sellers will know that you're a serious buyer, which may give you an edge over other buyers who haven't taken this step.
2. Know your must-haves—and be willing to compromise on the rest.
It's important to have a clear idea of what you want in a house before you start shopping around—otherwise, you may end up being swayed by every pretty property you see. Make a list of your must-haves, like number of bedrooms and bathrooms, as well as any must-have features, like a fenced-in backyard or granite countertops. That said, be prepared to compromise on some of your wants; chances are, you won't find your dream house right off the bat.
3. Do your research on neighborhoods before committing.
You might fall in love with a beautiful house, only to realize too late that it's located in a not-so-great neighborhood. Before making an offer on any property, do some research on the surrounding area. Check out crime rates, schools in the area, noise levels, and anything else that's important to you in order to make sure you're comfortable with the neighborhood where you'll be spending your days (and nights!).
4. Have your finances in order before starting the home-buying process .
In addition to getting preapproved for a mortgage, you'll also need to have your down payment saved up before you start seriously looking at houses. Most lenders require at least 3% of the purchase price as a down payment; if you can put down more than that (20% is ideal), you'll avoid having to pay private mortgage insurance (PMI), which will save you money in the long run. You should also have money set aside for closing costs , which are typically 2%-5% of the purchase price of the home.
5. Work with a real estate agent.
A real estate agent will be able to help guide you through every step of buying a house , from finding properties that fit your search criteria to navigateing the negotiating process .
EXCITING BUT STRESSFUL
Buying a house is exciting—but it's also downright stressful . Use our tips for first - time homebuyers above , and work with an experienced real estate agent , And remember : Rome wasn't built overnight —the perfect house might take some time (and patience ) finding . but it will be worth it when all is said and done .