If you’ve never done it before, buying a home can be extremely daunting. What are the steps? Where do you start? What paperwork do you need? How much money will you need? Never fear. If you’re buying a home for the first time, read on to have all of your questions answered.
Finances
Before starting to shop around, take a serious look at your finances. You would hate to find your dream home, only to realize you cannot afford it. Your savings should be at minimum of 3 month’s worth of living expenses and calculate what out of your savings and investment accounts you can use for a down payment.
Next, calculate what you can afford after all expenses for your house payment. It’s important not to agree to payments you cannot afford. Make sure to factor in the price of moving, possible repairs, change of address forms, paint, setting up utilities, etc.
If you need to borrow money, find programs designed for first time buyers. These options are typically great deals that are meant to help you find a property you can afford.
Find Help
Once you have an idea of how much you can spend, you can find a real estate agent to help you search. They will negotiate prices with you and they are very helpful as only the person selling the house pays their commission. They have extensive experience with people looking to buy homes so they can give you great advice.
You will also need to talk to an inspector so that when you find a house you like, you can have it looked at professionally. Some houses look great from the outside, but months later you may discover structural faults that will cost you in the long run.
Lifestyle
Find a home that suits your needs and will complement your life. This includes:
- Finding a home with the appropriate number of bedrooms and bathrooms. This is usually one of the easiest decisions to make.
- Finding a neighborhood that is perfect for you and your family. Factor in how long the commute would be from work or what kind of schools are in the area if you have kids.
- Do some research into the safety, cleanliness and general environment of the neighborhood. Drive through it at varying times of day and night to see if people play loud music, if children play in the streets, etc.
- If you have pets, is there an area like a fenced in backyard that you can keep them in?
Make a list of “must-haves” that will be deal breakers. If you need a home that is wheelchair accessible or that has room for 3 full-sized cars in the driveway, there may be homes that just don’t suit your needs.
Insurance
Do some research online and figure out what type of insurance you will need. It is recommended that you speak to a representative from at least 3 different companies and get a quote so you can compare the coverage and costs. Understand the differences between the types of coverage and determine which suits you best. You should also understand how and why to escrow your insurance payments with your monthly mortgage payments.
Patience
The process of preparing for, finding and buying a new home for the first time is not easy. There are a multitude of steps to take and a lot of places to slip up. Do a ton of research, keep notes on what you find and what you still need to do and be realistic. Your dream home at your dream price won’t fall into your lap and it’s possible you may have to compromise in some areas. But if you are patient and thorough, you will be happy with your new home.
All Things Real Estate Blog by Lori Webster
Lori Webster, REALTOR®, CNE
www. LoriWebsterSellsAZ.com
Direct: 480.518.2302
I am still learning... 
Comments (3)Subscribe to CommentsComment