Think deeply about why you are choosing to buy your first home now. Ask yourself if you are buying a starter home that you may want to sell in a few years or if you are looking to build roots for a long time. Consider if you prefer a house you will have to maintain, such as by mowing the lawn or repairing the roof; or if you prefer condo living, instead. Either way, securing a mortgage pre approval will help you in your quest to find your dream home. Have a Detailed Plan
- Solidly identify your budget. Plan out future expenses that may affect your budget a year from now. Weigh in the possible factor of a partner who is working, in school, or planning to get pregnant; a variety of factors can lead to less income.
- Factor in the additional insurance costs and monthly funds for home repairs, emergencies, possible HOA fees and other costs of owning your first home. It’s important to take the time now and create a detailed plan anticipating your future needs as much as possible. Many people failed to plan adequately, and lost their home as a result.
- Consider the neighborhood, the school district and so on. Decide if you want to live in the city or the suburbs, and what your commute would be like. Research the crime facts of the area and visit the neighborhood at night to make sure you are comfortable making such a commitment.
Choose a Trustworthy Team
- Buying your first home may be one of the biggest decisions of your life. Proceed cautiously and wisely. Consult your friends and family of trusted people as to whom they recommend to be your mortgage broker, mortgage qualifier, your realtor and your financial advisor. If you find a good mortgage broker that uses a company like mortgage right to offer the best rates to you then it will save you lots of money in the long run. There are lots of options out there so be sure to do your research to find the best one for you. And remember, these are all very important factors when you are going to become a first time buyer.
- Some even hire an attorney, since the paperwork is lengthy and sometimes difficult to comprehend for the first time buyer. You want to get in the habit of carefully reading through every piece of paper.
- Clearly understand the interest rates, whether they are fixed or adjustable and so on. Do independent research and ensure you are getting the most competitive market rates available. Be comfortable making your own decisions without any pressure. It is essential to your time to learn and fully understand the entire process.