When you decide to buy a home for the first time, it’s so exciting that you want to jump online and start looking at listings right away. But you have to remember to remain realistic during these first phases of home buying. Not only do you have to consider what you want in a home, you need to figure how much you can spend on a new house.
Other questions you may ask yourself include: Why do you want to buy a home? What preferences do you have in a home? Where do you want to live? Do you want a new home or an existing home? What are your financial goals besides buying a home? You need to be realistic about the answers in order to make the best home buying decision.
Consider these tips for first-time home buyers:
Research before you start your home search. Know exactly what features you want in a home and what your budget is.
Get your finances in order. Obtain a copy of your credit report and know your credit score. Don’t spend money on frivolous items right before you buy a home.
Be picky but realistic. Know that there is no perfect home. It’s okay to be particular, but you may have to compromise when it comes to home features.
Know your long-term goals. Do you want to buy a starter home and move in a few years or do you wish to stay put for a long time? Knowing this ahead of time can determine your mortgage terms.
Don’t let the home sale bleed your finances dry. You don’t want to max out in order to afford a house because you’ll need savings for maintenance and other financial goals.
Avoid waiting to get a loan. Before you begin looking for a home, talk to a lender and get prequalified for a mortgage.