3 Tips For The First Time Home Buyer
Buying a home can be a long, confusing, stressful process, especially if you’ve never done it before. Unsurprisingly, most people looking for their first home end up feeling overwhelmed. But that’s not always the case. In fact, many first time home buyers overcome all the hurdles they come across and get their dream homes. Now, we invite you to read our blog post, which presents three useful tips any first time home buyer should consider before starting to search for the perfect house and neighborhood.
1. Assess your needs and wants. The first thing a first time home buyer needs to do is to consider his family’s needs and wants. Since you’re about to make one of the biggest purchases of your life, it’s critical to ensure that you’ll get all “must-haves” and “nice-to-haves,” including the type of neighborhood and house style you want along with specific features important to you, such as kitchen appliances, favorite floor finishes, etc.
2. Determine how much you can afford. After choosing the right type of house for your family, you need to make sure that you can afford to pay for it. Three important things to consider are the down payment (though most lenders require a 20-percent down payment of the property’s value, you can also find 5- and 10-percent deposit mortgages, Va loans; however, a larger down payment will bring you a lower interest rate); upfront costs (e.g. VA appraisal/home inspection fees, insurance, closing costs, and legal fees) and potential maintenance/repair costs.
To find out exactly how much you can afford to spend on a property, you can send your loan application to several lenders, who will analyze your financial situation. Another essential aspect you need to know is the difference between pre-qualification, which usually involves a brief evaluation of your financial situation, including debt, income, and assets, and pre-approval, which implies a detailed verification of your financial background, including your credit score, pay stubs, employment, and any other information the lender may consider necessary to approve your loan application. Before opting for a home loan, make sure that you research other sources of funding potentially available to you (e.g. grants for veterans, teachers, etc.).
3. Think long term. Are you planning to have more kids or to take care of elderly relatives? Do you intend to move to a different area after a while? If you answered yes to any of these questions, you should think twice before buying your first home. If you buy a property in a very busy, noisy neighborhood, living a quiet life is impossible, not to mention finding a buyer when you’re ready to sell the house. You should also take into account future neighborhood growth. Since a neighborhood can change dramatically within several years, you’ll want to know what to expect in the future.
Another important point a first time home buyer should consider is step-by-step guidance through the home buying process. Contact us at Whitworth Builders today, and we can help you find a great house in the perfect neighborhood for your family. But we have an interesting question for you: Why buy when you can build your dream home? Dedicated to providing high-quality services to all customers, our professionals are ready to build a new home for you and your family in Crestview or Navarre, FL.