First Time Buyers: What You Need To Know
Real estate is one of those things that can be extremely confusing and time consuming. It's easy to get frustrated, especially if your a first time buyer. Many people just jump right in and hope everything works out.
It's much better to know what you're going into and what you need to do, so here are some useful tips to first time buyers! For more assistance in locating your new dream home, contact your local real estate professional.
Always Put a Down Payment
When you are getting ready to buy a home, you want to make sure you put some kind of down payment down. Depending on what route you go, the amount of the down payment will differ. For instance, most places will require at least 3.5% down, but you might end up paying more if your credit isn't the best. Keep in mind, there are some good reasons to put down at least 20%. For starters, you won't have to worry about mortgage insurance, which can be pricey. You will also be able to get lower mortgage payments each month.
Location is Important
Another thing to consider is that location is important! Not only can this dictate how much house you get, but some places are very expensive. An example would be a 3 bedroom, 1 bathroom home that $150,000 in one area, while a 5 bedroom, 2 bathroom home is $100,000 in another area. Another thing to remember about more expensive areas is that everything is more expensive. This can be anything from shops and restaurants to renovation companies. You really want to pay attention and do research on the area you're thinking about so you can be sure that you can afford it!
School District can Affect Home Value
When a homeowner wants to sell a home, there are quite a few things to consider. One of the biggest is that the school district the home is in can drastically impact the home prices. If you think you might sell down the road, you want to try and get a home in a desirable school district. The biggest reason is because people usually want the best education for their children and they don't want them to go to a school that has a bad reputation or isn't in a good area. This is also something to think about if you plan on having children.
Get a Thorough Inspection
This is something that cannot be stressed enough! Many first time buyers will get just a basic inspection, but that doesn't let them know of every issue that might be going on. Find someone who will do a thorough inspection and will look deeper than just what can be seen on the surface. The last thing you want to do is spend a bunch of money buying the house, just to find out that it's going to be another $20,000 to fix a major issue. An inspection can give you and idea of any issues and you will be able to use that to try and get a lower price.
If you decide to buy using a loan, try and go cheaper than the total amount of the loan. For instance, say you get a $100,000 loan. Try and get a home that will be cheaper than this with all the costs. This will give you extra money for any repairs, as well as renovations. If you did spend the entire amount, you would have to pay for repairs and renovations out of pocket. This can add up pretty quickly and actually put you in the hole when you thought you were coming out ahead.
Try and shop around. In other words, don't just jump at the first home you look at. You want to make sure you have options for a variety of reasons. For starters, you don't want to get your heart set on a home that you end up not getting. Another reason is that you might find another house that you love for a cheaper price. You also might be able to get more house for a cheaper price. Try to look at several houses so you can have more than one option.
Consider Renovations and Landscaping
The final thing you want to do is consider renovations and landscaping for each home you look at. One home might need $5,000 worth of renovations and landscaping, while another home might need $15,000. By looking at all of this before buying, you'll know if the home is a good price and if you can afford it. If the home price is lower than your loan, you'll be able to use that extra money for these.
Now that you know some tips, you're ready to start your search. There are other tips that you can look up, but these are pretty important. Go into the search ready and with a level head so you can find the home of your dreams.