Four Things Every First-Time Homebuyer Should Know Before Buying a Home

Watch on your mobile device >>

There is nothing more exciting than becoming the proud owner of your very own home – and for the very first time!  But with today’s ups and downs you want to be sure that everything lines up correctly, all i’s are dotted, t’s crossed and it all comes together smoothly.

To help you through the process and provide some guidance as you begin this exciting process, here are four insider industry tips about the first-time home buying endeavor:

Buy Now But Buy For the Right Reasons

Too many people these days are getting caught up in the hype they see on television (and in their communities) about buying a home and then flipping it for a huge profit.  The reality of these reality shows that you see on TV is that most of the people flipping houses are professionals.  Not only that, there are certain tax implications of flipping a house that could interfere with other, more advantageous tax exemptions you can get a first-time buyer.  Your purpose should be to buy the home with the intention to live in it as its primary occupant.  Not only will this protect your investment but it will also allow you to gain experience keeping up a home since you most likely have not had that exposure until now.

Make Sure All Your (Financial) Ducks Are In a Row

Nothing can be worse for a borrower than to go through the somewhat grueling process of applying for a mortgage only to be declined or put through a long arduous process because of their credit.  Buyers are definitely savvier these days, thanks to the myriad articles and media exposure to the real estate industry – however when it comes to credit there is still a lot of misinformation about how strict lenders are with guidelines. Make sure you have reviewed your credit report, cleaned up any erroneous information and worked to better your score it if is less than perfect.  Be prepared in advance with knowledge about current rates in your area and obtain a preapproval prior to beginning your home search.

Take Advantage of Free Money Out There

Before anything else, first-time homebuyers should research any and all potential programs, plans or grants out there available to them as a measure taken by organizations and agencies to help boost the real estate industry.  Whether grants from local, state or federal governments or programs designed to make your purchase feasible, there is help available and all first-time buyers should take advantage of those opportunities.

Stay Close Or Within Your Budget

One of the things many buyers are experiencing as a result of today’s very low rates is that they are able to get into more house for what might have been the same monthly payment just a few years ago.  Rather than use that as a gauge for you can afford, evaluate what you can afford overall.  When you set out to obtain a preapproval for your loan, getting preapproved for a price that works within your budget is the smartest way to go.  By sticking with something that financially makes more sense to you, you will avoid financial hardship later in case of any unforeseen circumstances.
~
Regardless of where you are in the process of buying your first home, it’s a good idea to meet with your Realtor for a custom consultation to help determine your needs.  Your agent will be able to provide expert advice on what to look for, what you can expect within your price range and valuable insight into what other homes have recently sold for in the area.  Call your agent today!