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Steps To Buying Your First House

November 21, 2019 | Posted at 4:27 am | by Sofia (Follow User)

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Buying your first home will surely seem complicated at first since it will be your first venture into real estate. With so much at stake and so many things to think about, it’s quite easy to feel overwhelmed. Nonetheless, all it takes to navigate the real estate market with ease is to acquire knowledge about the steps needed during the home buying process. So let’s get started.

Choose Your Loan Carefully

The first and most important step is to figure out your finances. Today everybody needs a mortgage to buy a home, especially if you’re buying for the first time. That means you need to find a lender who’ll front you the money and to whom you’ll need to pay back that money over time. Additionally, you’ll need to put down some amount for the down payment in order to get a mortgage. Figuring out how much you need can be tricky. A down payment on a mortgage is usually around 20% of the home’s price, but that doesn’t mean you necessarily need to have that much. You can find mortgages with a lower down payment of 10%, 5%, and there are even 0% percent ones. Choosing the right home loan for your budget is a process of its own, but it doesn’t have to be complicated if you have all the necessary information. It’s all about research and comparison and finding the best possible loan for your current situation. 

Keep Track of Your Credit Score

Besides the down payment as the first-time buyer, you’ll also need a decent credit score. This is basically a three-digit numerical summary of your credit report, containing detailed information on how well you’ve paid off past debts such as college student loans and credit cards. Naturally, a lender will want to make sure you’ll deliver your monthly payments to them and he’ll want to check your score and report in order to estimate the odds for that to happen. They will not only use this information to decide whether or not to loan you the money, but also decide at what interest rate and how much. So if there are blemishes such as late payments in your credit report this could lead to a higher interest rate or even ruin your chances of getting a loan at all. That’s why it’s essential to keep track of your credit score in case it’s necessary to bring it up to snuff. 

Know Precisely What You’re Looking For

After you figured out your finances, it’s time to research the market and see what you can get for your money. Entering any house that has the possibility of becoming a new home can put a spell on the buyer and make them hasty in reaching a final decision. That’s why it’s important to put together a list of key features you’re looking for in your new home. Think about whether you’re looking for an open or closed floor plan, do you need an office, the number of bathrooms and bedrooms, etc. It’s good to talk with family members or friends who already own a home and ask them if there are some features they now wished they had or didn’t have. Just keep in mind that you’ll likely have to prioritize in the end since you probably won’t find the house that has everything. There is also an option to choose a custom design before the house is built, and get exactly what you need. In that case, you should find a reliable home builder and consult about things like the number of stories, floor plan, and overall look of the house that will fit your style and budget. They will provide the pre-construction drawings, and you will see what you’re getting at the end of the process.

Think of the Neighborhood

Everyone has an ideal location in their minds, but you shouldn’t forget about the neighborhood since it plays an important part in your decision. The farther you go from the metropolitan area, the homes and lands are less expensive. On the other hand, one of the easiest traps you can fall into is to imagine that the long commute won’t matter that much. If you can’t find your dream home at the ideal location, don’t give up, maybe it isn’t built yet. Look for house and land packages, choose the lot in your preferred neighborhood and then build a home. 

 

The first step is always about finances and research, and remember that your credit score plays an important role in the home-buying process. Always be sure about the features you’re looking for, don’t forget to consider the neighborhood, and figure out would you prefer to buy move-in-ready, one that will need renovation or remodel, or build your custom house. Now that you know the initial steps needed, you already have a solid foundation to turn that next house into a home for the future.