For many people, purchasing their first home is one of the largest financial investments that they will make in their lifetime. While it is a daunting undertaking, it is also an extremely rewarding and exciting experience. Here is some financial advice for first-time homebuyers to make the transaction as simple and stress-free as possible:
Get pre-approved
Before you delve into house hunting it’s a good idea to get pre-approved for a mortgage. This will not only help you make a sound financial decision, but will also help narrow your search as you now know what housing prices are within your range and what sort of home you can expect to purchase. If you don’t get preapproved you may find yourself blindly navigating the housing market and may be setting yourself up for failure.
Put together a solid team
For first-time homebuyers it is particularly important to seek professional help throughout the entire transaction. A trusted real estate agent, experienced mortgage broker and in some cases a lawyer can help make buying a home safer and protect your finances and interests. Buying a home is a complex process, and it’s a good idea to seek the advice and expertise of those who are familiar with the industry.
Budget
When purchasing your first home it is extremely important to budget your future costs. Your total monthly housing cost (mortgage, property tax, utilities, ect.) should not exceed 32% of your household monthly income. Before you purchase a home it’s important to sit down and crunch the numbers to ensure that a particular house is within your price range. You don’t want to find yourself strapped for cash and struggling to get by once you’ve moved into your new home.
Don’t forget about additional costs
When buying your first home it’s important to keep in mind the additional costs involved in purchasing and owning a house opposed to renting. This includes inspection and legal fees, transfer tax, property tax, home insurance, moving costs, utility hook-ups and upkeep. Also be mindful of renovation costs if you aren’t completely satisfied with your new home.
Whether you are buying your house as a real estate investment or to have more living space, buying your first home is an exciting and scary venture. If you would like more information on buying your first home I would be more than happy to speak with you and guide you through the entire process. Buying your first home is an unforgettable moment that you will remember for a lifetime and it would be my pleasure to help you reach this milestone.
