This is an exciting time! Becoming a homeowner is a goal that so many people are working toward. Of course, this can also be a time consuming and stressful process. We have a few tips to help you move into your dream home without regrets.
Don’t Rush Into a Home
A recent study showed that nearly half of American homeowners wish they had done a few things differently as first time home buyers. Many have regrets ranging from the size of their home, to moving to the wrong neighborhood, to choosing the wrong home. Research, walking through several homes, and weighing all your options are just a few things you can do to prevent regrets. During this exciting time, many people end up making an emotional decision.
Set a Reasonable Budget
A common mistake many prospective buyers make is getting in over their head. They take the great first step of getting pre-approved. But they find out within of few months of moving in that their new budget is extremely tight. Before getting pre-approved for a loan be sure to calculate your monthly income and debt. Figure out what your down payment will look like and what you can afford for a monthly payment. It’s also good to remember that with the right realtor a smaller budget doesn’t necessarily mean settling for less than what you want.
As you are setting your budget, don’t forget about property taxes and homeowner’s insurance. If you close on a home in the top of your budget without thinking about these costs, you could find yourself in trouble.
Do Your Research
The best thing a first time home buyer can do is research. Each home will be located in different neighborhoods, with various nearby schools and amenities. Not only that, first time home buyers will have plenty to look for in the home itself like previous repairs, the year it was built, the builder, and so on. Certain details may place a significant role in the decision that the first time home buyer makes. It’s important to have lots of information and make informed choices.
On top of learning about the house, it is important to know about the contract process for both the bank and the title company. Finding out all the requirements and necessary paperwork ahead of time will save lots of stress further down the line.