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Essential Tips for First Time Home Buyers

Read these tips and everything you need to know to help you buy your first home.

What First Time Home Buyers Need to Know 

Buying your first home is a complicated process that takes time, plenty of research, and a lot of patience in today’s housing market. 

Find out more about house hunting tips and what to expect during the home buying process. When searching for a home, reach out to a licensed real estate agent. They can help you understand the home-buying process in your state. 

Preparing to Buy 

Preparing to purchase a home is the most important part of the process. This is your chance to make sure you know what you’re getting into before you purchase. 

5 Things to Consider Before Buying a Home  

Your credit score & debt matters 

Your credit score matters when buying a house.  However, getting a mortgage with a low credit score is not impossible. Lenders look at your debt-to-income ratio when deciding whether to approve your mortgage. 

Build savings 

The money you set aside will help with the down payment and other home buying costs. Additionally, there may be costs for repairing and remodeling the home you buy. 

How much can you afford? 

Before looking for homes, determine your monthly budget for mortgage, insurance, and taxes. This will help you narrow down your options and find a home within your financial means. 

Calculate your total monthly expenses, including mortgage payments, insurance costs, and property taxes. Knowing your budget will make the home buying process easier and more manageable. Your lender will roll these expenses into one monthly payment. 

Be sure you purchase your new home within your limits and consider leaving room to save each month. As a general rule, make sure your total mortgage costs will not exceed 25% of your monthly income. 

Home renovations & furnishings 

Will your home require renovations, new appliances, or new furniture? Be sure you budget for any renovations or purchases you might want. Make sure to have your home inspected before you agree to purchase. It could save you thousands of dollars in unexpected expenses down the road. 

Get a licensed, experienced agent 

As a first-time home buyer, be sure to find an agent with a track record who also works with a reputable mortgage broker. Mortgage brokers can assist you in your home buying journey. They can help you understand the local market, current interest rates, pre-approval amount, and estimate additional fees during the process. 

House Hunting Tips 

The home shopping process is the part where things can get exciting and start moving quickly. Keeping a level-headed approach to this phase of home buying is best. Getting too excited or overlooking things that could become problems and cost you money is easy. 

5 Tips for Every First Time Home Buyer 

Location is everything. 

It sounds so simple, but choosing the right location has a big impact on the home you buy.  

Create a checklist of things that are important to you: 

  • Do you need quick access to the freeway? 
  • Do you have or are you planning to have kids? If so, schools will be a factor. 
  • What about proximity to your job? Are you moving close to work, and will it be an easy commute? 
How to track the value of the property 

Your home is a major investment that you want to grow in value over time. There are many ways to look at the value of a home and check to see if the value will hold, grow, or decrease over time. 

What to know about property taxes and tax breaks 

Property taxes can vary dramatically, even between homes that are just a few miles apart. Research to see if cities offer tax breaks that create an incentive for people to move there. When you rent, you don’t have to think about this expense, but it’s a necessary part of the home buying process. 

Neighborhood crime statistics 

Look at the statistics to be sure you will feel safe living where you are looking to buy a home. There are several sites you can use to review neighborhood crime rates, which you can easily search by zip code. 

Be patient throughout the home buying process. 

Purchasing a home is a process that takes time. Take your time and make thoughtful decisions to avoid problems that can arise from rushing into buying a home. 

Apply for a LendNation Loan Online 

As you can see, there are many expenses and steps to consider before jumping into the home-buying process, especially if you are a first-time home buyer. 

Do you need to get past a short-term cash crunch or money emergency while trying to save for a home? Take a moment to apply now to see if you qualify for a LendNation loan in your state! 

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