If you’re a first-time homebuyer, you might not know the process for buying a home. We have created this guide to help you understand what to expect and when. The steps include:
- Find a lender that fits your needs
- Get pre-approved for a mortgage
- Find a real estate agent
- Start looking at homes
- Make an offer on a house
- Select your closing date
- Close on your home and move in
That said, let’s look at factors that should influence your decision when buying a new home;
If you are wondering which are first time home buyer requirements, consider the neighborhood’s safety, crime rates, availability of schools, hospitals and other essentials like grocery shops etc. Also, find out about the local civic amenities and infrastructure like water supply, power, sewage lines etc. If possible, talk to neighbors as well.
- Resale value
Try and buy a property that has high demand in the market because its resale value increases rapidly with good demand. Find out whether or not the area surrounding your future home is growing and thriving. If you’re planning to stay in your new home for at least ten years, this should be a major factor when deciding which house to buy. Your real estate agent will help you determine if an area is growing or declining by looking at the statistics on homes sold in recent years.
You may be tempted to spend your entire savings on buying a house or take a loan for 100% of the cost, but that would be a mistake because you will be left with no money for maintenance or other important things like furnishing etc. Instead, try and save some money before you decide to buy a house. You can also consider taking an 80:20 loan from the bank, where you pay 20% from your own pocket and borrow 80%. In this way, you will have some money left over for maintenance and furnishing your new home.
The size of your home must meet your needs now and in the future, especially if you plan to expand your family while in the home. Decide how many bedrooms and bathrooms you need; how much space for laundry and storage; whether there’s room for a workshop or office.
- Type of house
There are different types of houses to choose from, from single-family to studio apartments or condos. Your choice will depend on your needs and preferences. You should also ensure that the type you have chosen fits your budget. If you have a family, it is advisable to go for bigger houses with more bedrooms, bathrooms, spacious kitchens and living rooms so that everyone can have their space and privacy.
- Credit Score
The credit score is an important aspect when applying for a mortgage loan. The higher the score, the better your chances of securing a loan at low-interest rates. You should take time to review your credit report before applying for a mortgage loan so that you can correct any errors and make changes where necessary to boost your credit score before making an application for one.
Homeownership is everyone’s dream. It’s a way to build wealth, and it’s also a great source of stability. But first-time homebuyers face many challenges. The biggest one is coming up with enough money for a down payment and closing costs.
Lack of experience in buying and owning a home can also be an issue. And some first-time buyers may be intimidated by the process of getting a mortgage. If you are thinking about becoming a first-time homebuyer, it’s important to seek help.