First-Time Home Buyer? Remember The Acronym SHED

Buying your first home is a huge first step. Between applying for mortgages, hiring a real estate agent, and going to see multiple homes for sale, there's a lot to experience. It's important to keep your wits about you and not to get so wrapped up in the excitement that you end up overspending or buying a house that's not suitable. How can you avoid these mistakes? One option is to remember the acronym, SHED, outlined below.

Save More Than You Think You'll Need

Closing on a home often ends up costing more than you think. You'll need a down payment, of course. The amount of that down payment will depend on the type of mortgage you're taking out and the price of the home. On top of the down payment, though, you will also need to pay your real estate lawyer, surveyor, inspector, and some back taxes. A good guideline is to save at least $5,000 in addition to your down payment to put towards closing costs. The more money you can save right now, the better.

Hire The Right Agent

Don't just hire the first real estate agent you find. Take your time to meet with a few agents, and then work with one you get along with best. Your agent should have plenty of experience working with first-time home buyers and should be willing and able to answer all of your questions.

Explore Your Mortgage Options

Don't just assume a conventional mortgage is your best option. For many first-time home buyers, an FHA mortgage is a good choice. The down payment requirements and credit score requirements are lower. A VA mortgage is also a good choice if you qualify by being a member of the military or veteran. Talk with a mortgage officer and ask them to recommend a mortgage type for you based on your financial history and income.

Don't Rush

Don't buy the first home you see. You probably should not buy the second home you see, either. Take your time, look at plenty of homes, and develop your sense of what you like and what you don't like. As a first-time homebuyer, it is easy to get overly excited about a home that is not as well suited to your needs as you might initially think. If you slow down and take your time, you're less likely to overlook something important.

If you remember the acronym SHED and adhere to the principles above, you should be able to find a new home. For more information, contact agents who specialize in residential real estate. 



Tags:
429 Words

About Me

Selling Your Home on the Local Market Hello, my name is Ben Hatten. Welcome to my website about selling your home on the real estate market. When I was ready to sell my home, I thought that the process would go smoothly from start to finish, so I did not acquire help from an agent. After learning about all the things that could go wrong, I decided to enlist the help of an agent to sell my home with assistance. I created this site to help everyone prepare for the process of selling their home with help from an agent. I hope you will come by often to learn more. Thanks.

Search

Categories

Archive

Latest Posts

Reasons to Choose a Studio Apartment
12 July 2021
When you begin looking at apartment listings, you might come across some that advertise studio apartments for rent. Studio apartments are ideal for ma

How To Hire The Right Realtor To Sell Your Home
12 July 2021
When you decide to list your home for sale, you may have a list of things to do. For example, you might need to fix some things around your house. You

Want To Purchase A New Construction Home? 3 Important Things To Understand
28 June 2021
A new construction home is one that a builder is already in the building process or is a home in a new development that is already scheduled to be bui