After living in an apartment for ten months, the end of the lease is just around the corner. 
The
question looms whether to renew it or search for a place that one can call home? Maybe it is time to find a home. Reasons for moving into a home can range from a growing family, or the dog just needs a yard. Whatever the reason maybe, the idea of buying a home can be scary, especially for first-time home buyers. When in the process of buying a home, nothing seems more confusing. Renting allows one to dream of a home, but without the paperwork or attempt to understand what “3.5% down” or “APR” means. One can laugh but there are many people out there can get confused within the process of buying a home. There should have been a class in high school about first-time home buying, but thanks to the U.S. Department of Housing and Urban Development they break it down into a few easy steps. I am going to share these steps in my way:
1. What is your budget?
Let’s be real and be smart. Homes are expensive, not just initially. There are monthly expenses, not rent but the bills, HOA fee, taxes, and insurance. Also, don’t forget about the down payment.
2. Think about getting a real estate agent
Many agents are familiar with financial planning and can make recommendations regarding
the budget. An agent can help out in every step and make things very easy. Home buying is a big decision and is not to be done lightly or without help.
3. Look for those loans and those programs
The agent will provide the client with 2-3 loan officers who offer products that fit the customers’ needs. Luckily for first time home buyers, there are many programs, loans, and grants that one can apply for. One program is Federal Housing Administration (FHA) loans, which lowers the down payment, for first time home buyers. Usually, a down payment on a house is 20%, but with the help of FHA they can bring down that percentage to as little as 3.5% according to one’s credit score.
4. Start home hunting
The second-best part about buying a home is house hunting. Look around a see what is available, if you haven’t started that already. It's nice to have a list of things one would want in the house and don’t want. Remember the budget. One also might have to think about where it is located compared to work, or if the schools in the area are good.
Fun tip: Don’t focus on the carpet or the wallpaper or even the cabinets. Concentrate on the floor plan. You want to love the floor plan because you can change all those things and make the home your own. And those fixes can go towards your home equity.
5. Make an offer
In this step, it is beneficial to have an agent, because they can help negotiate and possibly lower the price of the home you love.
6. Receive a home inspection
This is critical; a home inspector will make sure that there are no safety issues or defects that might cost you more money down the road. I would suggest getting a Home and Radon Inspection through NextDay Inspect.
7. Shop for homeowner’s insurance
8. Sign the papers and receive the keys
9. MOVE IN!
Time to enjoy the fruits of your labor and get settled as first-time homeowners.
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