The One and Only First-Time Homebuyer Guide You’ll Ever Need

Currently, the homeownership rate in the US is 65.5{5ab75762cf707683d7af2475431dd95a23fbc9cf5cb8a45517116f350cf35bde}. If you’re thinking of hanging up your renter hat and becoming a homeowner yourself, then it can be an exciting time for you!

However, buying a home isn’t easy, and it’s not cheap either. So you might have some anxiety about the process.

Read on for a quick homebuyer guide so the process is easy for you!

Set Your Budget

Before you go out on a home search, you should set a budget first. Check how much you have in your savings account and how much you’re willing to borrow for a mortgage. You should also check your credit score, as it’ll affect not just how much you can borrow, but also the interest rates you can get.

You should also think about how much you can put down for a down payment. Depending on the type of mortgage you get, it can be anywhere between 3{5ab75762cf707683d7af2475431dd95a23fbc9cf5cb8a45517116f350cf35bde} to 20{5ab75762cf707683d7af2475431dd95a23fbc9cf5cb8a45517116f350cf35bde}.

With these rough numbers in mind, it’ll be easier to narrow down your choices.

Speak to Mortgage Lenders

Even if you’re not ready to borrow yet, it’s useful to reach out to some mortgage lenders. You can get a good idea of how big of a residential mortgage you can get, and explore the types of home loans available.

For example, did you know there are doctor mortgages? Specialized home loans can really help you out. Learn more on doctor mortgages to see if you qualify.

If you’re ready to borrow, then get pre-approved before you go house hunting.

Get a Real Estate Agent

This isn’t mandatory, but it’s highly recommended, especially for first-time homebuyers. These professionals will have a home buying checklist and can use their connections in the industry to get you in your dream home.

While you’ll have to spend more money, it’ll be worth every penny. Not only can they show you suitable houses for your needs and budget, but they can also help you handle all paperwork and coordinate every step of the process.

Tour Potential Homes

Whether you’re going it alone or using an agent, the next step is to tour homes. Go into each viewing with a clear list of your needs and wants, such as:

  • Square footage
  • Bedrooms
  • Bathrooms
  • Storage space
  • Exterior condition
  • Garage
  • Energy efficiency
  • Neighborhood (traffic, appearance, safety, etc.)
  • Nearby amenities (shops, restaurants, hospitals, parks, etc.)

If you don’t know how to look for flaws in homes, an agent can help here.

Make an Offer

Think you’ve found your dream house? Then it’s time to make an offer! Your real estate agent can help you submit the right price.

If the seller declines, you can always make a counter-offer. If they accept, then it’s time to get your mortgage approved. You might need to submit additional information, so be prepared.

Get an Inspection and Appraisal

Inspections aren’t required, but they’re recommended. It’ll tell you about any structurally unsound areas or problems, such as mold. Appraisals are required by mortgage lenders, so don’t skip this step!

Once both are done, you can close on your home!

Use This First-Time Homebuyer Guide for Success

If you’ve been nervous about buying a home, don’t be. With our guide, it’ll be a simple process. So good luck house hunting!

If you enjoyed this first-time homebuyer guide, then keep reading our blog for more real estate advice!

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