Buying a house is a huge decision and probably the most expensive purchase that you will make in your lifetime. Nevertheless, as first-time buyers with little knowledge of the home buying process, you could be forgiven for finding the entire experience overwhelming and struggling to know where to start. Fortunately, we can help. We’ve put together some of our top tips for first time home buyers which should help you to get started with this important milestone in your life.
Start Saving As Soon As Possible
It goes without saying that buying a home is a very expensive process. Not only will you have to stump up a significant deposit, but there are also lots of taxes and fees that you’ll need to account for too. The more money you can save for your down payment the better. You’ll be able to reduce the amount you need to borrow, but a bigger deposit could also secure you a better deal on your homeowner loan since it shows a bigger commitment to your purchase. Ideally, first time buyers need at least 10% of the purchase price of their property but check with your lender.
Get Your Finances And Credit Rating In Order
Getting a homeowner loan is often the hardest part of a property purchase. As well as the deposit you can offer, one of the key things that lenders will look at is your credit score and your income and outgoings. Your credit score tells lenders how likely you are to be able to repay your homeowner loan, and the better this is, the more favorable the interest rate on your mortgage will be. This alone could save you thousands of dollars on your mortgage every year. You can help improve your credit score by clearing off any debts and making sure your bank account stays in the black every month.
See If You Qualify For Any Assistance
Many States are keen to get people on the property ladder and some are offering assistance programs to help first time buyers close a deal on their property purchase. Not everyone will automatically qualify for assistance, but it’s worth seeing if there are any home-buyer initiatives that you could be eligible for. They could save you money and make the process simpler.
Get Pre-Approved For A Homeowner Loan
Once you have found a homeowner loan at an attractive rate that you are happy with, it helps to get a certificate of pre-approval for your mortgage. This shows that you have been offered the money needed to buy your home and could improve your position when you make an offer on your chosen home as the sellers will know that you have the capital needed. Getting pre-approved will also give you a figure that you can use as your budget when shopping for your first home.
Hire A Realtor
Finding the perfect property can be a daunting experience, especially if you are buying in an area that you aren’t familiar with. Choosing to hire a realtor is invaluable for any property purchase, but especially for first time buyers. Your realtor can quite literally walk you through the home buying experience, using their knowledge and expertise to make sure that you find the right property at the right price. They’ll know current market conditions and valuations so that you don’t end up paying too much and will provide an impartial viewpoint if your heart threatens to rule your head. A great realtor will see you through every step of the process, helping to make your first ever property purchase as smooth and straightforward as possible.
For more tips for first time home buyers, contact B.Properties to speak with our experienced real estate team.