Looking to buy your first home? It is an exciting time when you are looking to get on the property ladder, but it can also be a stressful time, particularly when you consider how much money is being spent. Buying a home is usually the most expensive purchase you will ever make, and it can be shocking when it is the first time you are buying a home. Not only this, but the process can also be long and arduous. With this in mind, this post will look at a few of the best tips for first time home buyers that will hopefully come in handy.
1. Put Down As Large A Deposit As You Can Afford
First, you should try to put down as large a deposit as you can afford. Although it is difficult to raise such a large amount, it will do you a favor in the long run as you will be able to get a better mortgage and pay less over the long term. Look for ways to bolster your deposit, whether this is a spending freeze, borrowing from loved ones, part-time work, or online work. Ideally, this will be 10%+ of the property value.
2. Know What Your Wants & Needs Are
When looking to buy a home, you always need to know what your wants and needs are. There will be certain features that you require from your home, such as a certain number of bedrooms or within a certain distance from work, and you will not sacrifice these. The home should support your senior years as you are not buying the property for your current needs only. There will then be then things that you want, which could include a garden. The needs are ideal, but you may have to sacrifice these in order to find a property that ticks the essential boxes and is within your budget.
3. Consider Sacrifices That You Are Willing To Make
Leading on from this, you should consider what sacrifices you are willing to make, particularly if you are struggling to find anywhere. Often, people have to look slightly outside of where they want to buy to find somewhere affordable, and this should be considered as it can be a smart way to save money.
4. Consider Extra Costs
When looking to buy, you must remember that it is not just the deposit and mortgage payments that you will have to cover. There are many other costs involved, such as:
- Appraisal costs
- Survey of property
- Escrow fee
- Title-related fees
- Property taxes
These can all add up, so you need to calculate how much they might cost and factor this into your budget.
5. Get A Mortgage In Principle
When you find the house that ticks all the boxes, you will want to act swiftly so that you can snap it up before anyone else. One of the best ways to do this is to get a mortgage in principle, which is essentially a statement from a lender confirming how much they are happy to lend you to buy a home. This is useful because it shows sellers that you are a serious buyer and can quickly get the required funds in place. It is also helpful because it gives you a clearer idea of what you are able to afford (and what you cannot afford).
6. Consider The Neighbourhood
You must also look beyond the house itself and think about the neighborhood. Buying a house that ticks all of the boxes but is not in a neighborhood that fits your lifestyle will not be a smart move, so you should think about what kind of neighborhood suits you and spend time researching it online. Additionally, spend some time in the area when you view a house so that you can get a feel for an area and possibly even speak to someone about what life is like there.
7. Consider A Manufactured Home
Manufactured homes are becoming increasingly popular and can be a great option for first time home buyers. Essentially, manufactured homes for sale are built in a factory and can then be installed on land that you lease or own or in a manufactured home community. The key benefits of buying a manufactured home are that they are cheaper than a traditional house, they only take a few months to build and are built to a high standard, and you do not have to worry about competition snapping them up.
8. View The House Multiple Times
Following this, it is also important to view a property a few times if you are interested. It is hard to take everything in on your first visit, plus it is a good idea to visit during different times of the day to see what life is like there. This is a massive financial and lifestyle decision to make, so you need to make sure that it is the right one, and viewing the property a couple of times is the only way to determine this.
Hopefully, this post will prove to be useful for first time home buyers and help you to find the perfect first home.