How to Prepare to Buy Your First Home
If you’re thinking seriously about buying your first home, then you should know that the experience can be trying and difficult at times. The process can be a long one and can sometimes feel a bit overwhelming.
In the end, however, when you walk into that home knowing that it’s yours, it feels so much more satisfying than renting. You should feel pride in what you have accomplished, especially knowing the economic benefits of owning versus renting.
With that being said, here are some things you need to do as you prepare to buy your first home:
- Check your finances—The first thing you need is a realistic appraisal of your finances. You have to determine if homeownership is something that you are financially ready for. Look at all of your monthly expenses and figure out if you will have enough money to put into emergency savings in case something breaks and you have to fix it. You will also need to have a substantial amount in savings for the down-payment on the loan.
- Get pre-approved—Next, you should start shopping around for the best interest rate on a pre-approved loan. If you get into a bidding war with other potential buyers, a pre-approval will actually swing in your favor since you don’t have to take the time to do extra paperwork. A pre-approved loan helps you find the cheapest rate possible and also helps you figure out exactly how much house you can afford.
- Find a realtor—Next, you will need to find a realtor with whom you can work closely. You want a realtor who will take into consideration all of your must-haves and who can find the best fit for your needs and budget. A realtor should be familiar with all of the neighborhoods in your area and should be able to find you the home that will work best for you.
- Hit a lot of open houses—An instinct for many first-time homebuyers is to go with the first house that catches their eye. Instead, you should look at as many homes as possible. Don’t settle on any until you are absolutely sure it’s what you want. This isn’t like a lease where you can move out after a year. You are making a long-term commitment, so you don’t want to rush in.
- Get an inspection—Once you find a home you are interested in, it’s essential that you get a home inspection. You don’t want to buy a house with serious plumbing or electrical problems, only to have to sink thousands into it for repairs.
After you’ve gone through all of this, it’s time to make an offer and see if your bid is accepted. Then comes the worst part of the whole process—the waiting. But once you get that call that your offer has been accepted, the feeling of elation makes the process well worth the experience.
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