TIPS FOR FIRST TIME HOME BUYERS.

It is hard being a first time home buyer, especially if you don’t have any experience with real estate, property values, or market appreciation. You may be wondering how you’ll be able to buy a home that will help increase your net worth, or at least, not shrink it. In this article we will discuss some of the tips to first time home ownership.

1. How’s your financial health?

Before checking for listings or falling in love with your dream home, do a serious audit of your finances. You need to be prepared for both the purchase and the ongoing expenses of a home.

2. Save for a Down Payment

If saving up to pay cash for the total price of a house isn’t reasonable for your family’s timeline, at least save for a down payment of 20% or more. Then you won’t have to pay for private mortgage insurance (PMI), which protects the mortgage company in case you can’t make your payments and end up in foreclosure

3. Which type of home will best suit your needs?

You have a number of options when purchasing a residential property: a traditional single-family home, a duplex, a townhouse,

4. Which specific features do you want your ideal home to have?

While it’s good to retain some flexibility in this list, you’re making perhaps the biggest purchase of your life, and you deserve to have that purchase fit both your needs and wants as closely as possible. Your list should include basic desires, like size and neighborhood, all the way down to smaller details like bathroom layout and a kitchen fitted with durable appliances.

5. Stick To Your Budget

Don’t go over your budget for a home, even if it seems perfect for you, and be sure you budget in enough money for repairs or renovations. The right home is out there for you, so keep searching until you find a home that fits your budget and your list of must-haves.

6. Save for Closing Costs

Along with your down payment, you’ll also need to pay for closing costs. If you’re a first-time home buyer, you may be wondering how much it costs to close on a house. On average, closing costs are about 3–4% of the purchase price of your home.

7. Use an experienced realtor who knows the area and the market.

Your realtor can make or break your home buying experience. If you know where you want to live, try and get a realtor referral. A good realtor has knowledge of the area — a great time saver — and more important is his or her ability to listen and execute what you are looking for,” Fountoulakis says. “A good realtor will be in your corner until the closing — and, in some cases, beyond.”

Conclusion

This overview should help put you on the path to filling in any gaps in your home-buying knowledge. Remember that the more you educate yourself about the process beforehand, the less stressful it will be, and the more likely you will be to get the house you want for a price you can afford