Here are 4 tips that every first-time homebuyer should consider when purchasing their first home.
1. Get Pre-Approved – Sellers won’t accept your offer unless it’s all cash or you have a lender’s letter saying you can get the financing you need to close the deal. Getting pre-approved is possibly the most important part of your transaction.
2. Target your territory – Every town has pros and cons, and casting too wide a net can make it harder to make a decision. Decide first where you want to live and focus on those areas. Do your research in advance.
3. Prioritize your preferences – You don’t know how many times I take a couple out and they both have differing opinions on what is important to them. Make a list of what’s important to you and your family. Consider location, condition, price and/or certain amenities. It’s imperative that you know the difference between wants and needs. Not every house will check every box. So decide what you can live with and what you can’t live without.
4. Know your budget – Rather than guessing how much you can borrow or how much your closing costs will be, discuss specific numbers with a reputable mortgage lender or broker and learn exactly what will fit comfortably within your budget. Ask your Realtor for a few referrals. Realtors are great resources and know which lenders will close the transaction on time and without hiccups.