Are you planning on buying your first home soon. If so, this can be one of the most exciting times of your life. However, don’t let that excitement cause you to overlook important considerations of being a first time home buyer. While this list could just as easily be 10 things to consider when buying your first home, we wanted to boil it down to three things we feel are critical to keep in mind as you embark upon this process.
- Have You Determined How Much Home You Can Afford? – I am not just referring to a rough range of what you think you can afford. Have you sat down with a lending institution, had your credit reviewed, calculated your potential down payment and really decided exactly how much home you can truly afford? I say this as it is easy to allow budgets and numbers to begin to creep once you start looking at properties. It is much better to determine what you can afford up front and stick to that number. There is no sense falling in love with a property that you learn later you cannot get approved to buy.
- Have You Decided Upon An Area or Neighborhood? – It makes a great deal of sense to do some research up front to determine what city, area or neighborhood you want to buy in and narrow your search accordingly. There are many things that can go into this decision from schools to how active a particular area is. The main thing is to determine what is important to you and find an area that meets those needs. Like the point above, it makes no sense to fall in love with the perfect home in an area you do not want to live.
- Are You Prepared for Costs Associated With a New Home? – Although the home’s purchase price represents the largest cost, you need to be prepared for other costs associated with being a first time home buyer. First, you will have closing costs that are roughly 3% – 5% of the amount of your loan. You should also plan to have a little money set aside for the inevitable repairs you may want to make. Finally, you will inevitably want to purchase some things for your home to make yours. This may be some area rugs, furniture, window coverings, etc. The point is that you will want to plan for some money to be spent once you get moved in. These costs can add up and become overwhelming if you do not take them into consideration beforehand.
Being a first time home buyer is an exciting time in anyone’s life. Enjoy the process and take these three things into consideration to help you navigate the process. Let me know if you have any questions about this article. You can reach me me directly by calling (714) 907-3195 or emailing me at firstname.lastname@example.org. I look forward to hearing from you!