7 Practical Tips for First-Time Home Buyers
Buying your own home at last can be nerve-wracking and thrilling at the same time. It might be your biggest investment you will ever make in your life. The beginning of this new phase of your life can be complicated as it is unchartered water. However, things need not to be difficult for you. You will be learning a lot along the way.
All issues and problems you will encounter during this event in your life can be solved with proper knowledge and financial independence. Below are some helpful tips from Wincrest you should follow as a first-time home buyer:
Save early for down payment
It is always required to pay for down payment when buying a house or apartment. Usually, home buyers are allowed to pay 3 percent of the total contract price. However, there is a problem with that. Paying less than 20 percent of the total amount of the property means you will have higher costs. Before you pay, try using down payment calculator so you would have a goal amount. There are saving tips for your down payment: set aside your tax refunds and bonus from work, create an automatic savings plan and track it using an app for your progress.
Check price range you can afford
Before you decide to buy your own house, you need to determine the price range of the property that you can afford. Check your finances and then you can use online calculator to find out how much you can spend on the property.
Determine the best financing option for you
You will always have wide array of options when it comes to home financing. One good example is government-backed loans. The state has its own programs for first-time home buyers like you and you just need to grab this opportunity. There is also bank financing. Keep in mind that you need to weight your options and choose what will suit your financial needs.
Monitor your credit score
Credit score is an essential factor to qualify for a loan. Before you buy the property you like, check your credit score first. Keep in mind that the amount of credit you are using is in ratio to the available credit limit for you. Generally, first-time home buyers have lots of available credit for them.
Go to first-time home buyer’s seminar
It is recommended for first-time home buyers to attend seminars that will help them to navigate this new chapter of their lives. Different organizations such as city housing departments and NGOs are offering these real property seminars. Subjects included in the event are choosing the right property, financial option, and home maintenance. These seminars are for free.
Determine the type of property you want to buy
You have a lot of options here. If you are starting a new family a one or two-bedroom home is ideal but if you are single and living alone, a condor or apartment is better choice. In other words, choose only what is best for your lifestyle and situation.
Save money for the after move-in phase
Mortgage and down payment are not the only things you need money for. After moving, you also need to fill it with furniture and alike to make it a decent home. Appliances, fixture, paint, and other finishing touches are also part of your supposedly move-in money.