Have you been dreaming of buying your first home? Purchasing your first-ever home is a huge step in your life, and it is also a big investment. Prior to making that commitment, there are a few things that you need to know. Here are three tips that will be helpful to you as a first-time home buyer.
Tip #1: A Down Payment Will Be Necessary, So Start Saving Early
If it is early on, you likely have no idea how much you will be spending on a house, and that's okay. However, you should know that you will need a down payment when you buy a house. It is not a good idea to wait until the last minute to start saving for that down payment. So make a commitment, discipline yourself, and start saving early. Set yourself a goal of how much to save and what length of time you would like to save it in so that you know how much you need to save on a monthly basis. While you may need to cut back on some luxury expenses, it will be worth it in the end.
Tip #2: Pay Off Some Of Your Past Debts
When you finally do purchase your home, you will have a monthly mortgage and insurance payment. These won't exactly be inexpensive. So to cut back on your monthly expenses when that time comes, try to start paying off your past debts now. Plus, by paying off your debts, you will increase your credit score and improve the appearance of your credit history. While you are at it, avoid taking out any lines of credit, as this could negatively impact your chances of qualifying for a home mortgage.
Tip #3: Start Researching Available Homes In Your Desired Area
It is never too early to start researching homes that are available to purchase in the area that you desire to buy in. Some homes will stay on the market for a while, while others will be scooped up pretty quickly. If a home stays on the market for some time, make sure you do your research to find out why. It may be something with the house, or it may be that the price is marked too high, in which case you may be able to have some negotiating power if the home has been on the market for several months with limited offers. As you research homes, keep security, neighborhood, and quality—not just price—in mind, and don't forget to visit the homes in person to get a real feel of the house and neighborhood.
When you are ready to look at homes and make that purchase, talk to local real estate agents.