What Do First Time Home Buyers Need To Know – Looking to buy your first home? A home is an excellent way to build wealth because real estate is the most valuable asset.

Buying a home is an exciting time, but it can be overwhelming for first-time home buyers. This first-time home buyer’s guide is here to help you navigate the home buying process.

What Do First Time Home Buyers Need To Know

What Do First Time Home Buyers Need To Know

I have worked in real estate management, purchased two rental properties, most recently spent 2 years as a Redfin Associate Agent, and currently help other agents in the metro Denver area get their clients in faster. All this to say, I know a few things about real estate and want to help you understand the buying process a little more so you can buy your first home with confidence!

First Time Home Buyer’s Guide

Thinking about these points will help you decide if you are ready to buy your first home or if you should continue to rent.

If you’re ready to buy your first home, spring and summer are the most popular times to buy and sell real estate. There are many factors that determine this; The weather is nice, which makes it easy to see and visit the houses, and the kids are out of school, which makes walking less stressful.

Fall and winter are still good times to buy a home. Less competition and easier access for professionals who are often very busy during the summer. So if someone tells you that you can’t buy a home during the coldest months of the year, know that it’s just a home buying myth.

*Disclaimer: This is a very general home buyer’s guide. Each state’s process may be slightly different, and each professional you speak with will have a slightly different way of approaching it. We recommend speaking with an expert in your area to get the best “full picture”*

Tips For First Time Homebuyers

The first step to buying a home is finding a lender. It is recommended that you shop around to see what types of mortgages are available and what types of rates you can get. The lower the interest rate, the better. But be careful with adjustable rate mortgages because even though they start out with low interest rates, they can adjust and increase over time.

Typically, home buyers finance the purchase of a home by obtaining a mortgage. There are dozens of different types when it comes to mortgages.

Be sure to discuss your options with the lender to determine the best option for you and your situation.

What Do First Time Home Buyers Need To Know

Be sure to talk to your lender first to determine how much money you need to save to buy a home. How much you can afford as a down payment on a home will affect your family budget.

First Time Home Buyer Guide: Buying Process, Resources, Tools

Some mortgages, such as FHA loans, allow you to put 3.5% of the purchase price down.

If you can put down 20% of the home’s purchase price, you can avoid private mortgage insurance (PMI), which is an additional monthly cost to your mortgage payment. Even though it says “safe”, it’s not designed to protect you. Instead, it protects the lender because it is considered a “high risk” borrower. I would recommend avoiding PMI if you can.

However, the down payment is not the only cost you will incur in your home buying process.

A common misconception is that the down payment is the largest expense you will incur when buying a home. While the down payment is often the biggest item on the ticket, there are other important costs that come with buying a home.

First Time Home Buyer In St. Louis? Here’s What You Need To Know

To get one of these loans, you’ll need to meet with a lender or mortgage broker who will ask you to fill out an application.

The lender will ask questions about your job, income, debts, credit score and savings. They will also do a credit check to help determine the interest rate you may qualify for.

You need to decide how much you can and are willing to pay as a down payment. Also determine what you can afford and are willing to pay as a monthly mortgage payment.

What Do First Time Home Buyers Need To Know

Once they put everything together, they pre-approve the loan and give you the maximum purchase price. The lender will give you a pre-approval letter, which is required in some states to make an offer on the home.

First Time Homebuyer Programs In Florida (fl)

~ Fun Fact: Generally, the higher the down payment, the lower the interest rate. Also, if you pay less than 20% of the purchase price, you must pay PMI

When looking for a home, it is best to use a licensed real estate agent to help you through the process. It’s great if you get one before you find a lender. Usually, when you first find a real estate agent, they can recommend a few lenders they have worked with in the past.

The real estate agent you choose to represent you in this process is considered your buyer’s agent. They have a fiduciary duty to you, which means they have your best interests in mind when it comes to how you spend your money.

Need help finding a great real estate agent in your area to help you find your future home? Start a Free Home Buyer Consultation Call and I’ll be happy to help you find one completely FREE!

First Time Home Buyer: Everything You Need To Know

I would recommend that you get references from trusted people to find a good agent. If your best friend recently bought a home, find out who they used and ask how the process was with that agent.

Buyer’s agents have a fiduciary duty to their clients, so they must look out for their best interests during the process, but it’s important to work with someone you feel comfortable with and trust to treat you well.

In most states, sellers pay agents commissions for selling homes, so working with a great real estate agent won’t cost you anything.

What Do First Time Home Buyers Need To Know

~Fun Fact: Not all real estate agents are real estate agents. Agents must complete additional courses and meet high ethical standards to become members

Common Mistakes Made By First Time Home Buyers

When it comes to what you want in a home, it’s important to make sure you and the person you’re looking for are on the same page. Make it clear to yourself, your family, and your agent what you’re willing to compromise rather than break the deal.

Learning and understanding your market can be very beneficial to the home buying process. Decide where you want to live and how that decision will affect house prices.

Think about what you want to do with the home ownership. Do you want a great place to entertain people or are you longing for a quiet getaway after your long days? Maybe you have dogs so they need more space inside and outside to run around. Write whatever.

Next, decide what items you have in your new home. If you can’t live without a 2 car garage, look no further than single car garage homes. But it’s okay to let go of your desire for a master suite with a jetted tub.

Useful Tips First Time Homebuyers Should Know Before Buying In 2021

Everyone’s needs and wants are different. If you really hate cooking, don’t let anyone convince you that you should have a chef.

This is usually the most exciting part of the process! Inspecting your own homes is a lot of fun! However, it is a very stressful and tiring process.

Your agent will likely set you up with a search through the local MLS, which will email you homes that meet the criteria you specify. You can see photos and read information about each location and decide if you want to check it out.

What Do First Time Home Buyers Need To Know

~Fun Fact: Most listing agents post properties on the MLS, only to have lots of people check them out over the weekend. So be sure to check back for new listings on those days!

First Time Homebuyer Programs In Missouri

When you find some homes you want to see, let your agent know and they will make a showing for you. Go with your agent (or in some cases one of their associates) to view the home.

Consider your to-dos and don’ts at home to improve your search. Be honest about your opinion at home. If you really don’t like the design, you won’t hurt your agent’s feelings by telling them.

You’ve looked at lots of houses and finally found one you can afford

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John Pablo

📅 Born: May 15, 1985 📍 Location: New York City 🖋️ Writer | Financial Enthusiast Welcome to my corner of the web! I'm John Pablo—a finance enthusiast and writer passionate about making money matters simple and accessible.

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