Are You Buying a House for the First Time? 7 Vital Tips for the First Time Homebuyer
This article with tips for the first time homebuyer is sponsored by SRE.com.
Trends in the housing market are always shifting. If you are a first time homebuyer, what is the best way to get the bid on the home you’ve fallen in love with? Here are 7 vital tips for a first time home buyer that will make the buying process go much more smoothly.
1. Find Out What You Can Afford
You’ll want to figure out how much you can safely spend on a house before you even start looking. A good rule of thumb is to have at least three months of payments in reserve. This includes your house payment and other monthly debts. That way you can cover your mortgage payment in case of any unexpected events or costs.
2. Save Your Money Early
You’ll want to keep in mind that there are three expenses that you will have when you first buy a house: down payment, closing costs, and moving expenses. A mistake that first time homebuyers can make is not saving enough for a down payment or saving anything at all. There are programs that allow little to 0% down, but those programs will likely lead to much higher monthly payments. The standard down payment is 20%, but choose a down payment that makes sense for you.
3. Check Your Credit and Strengthen It
It’s a common myth that checking your credit can lower it. But actually, the credit reporting companies actually encourage it. applying for credit cards and loans will impact credit scores. but checking your credit reports or credit scores won’t. And regularly checking your credit reports and credit scores can actually be a good way to make sure your information is accurate.
4. A First Time Homebuyer Needs to Act Fast
If you are a first time homebuyer, you’re going to be seeing homes selling quickly with multiple offers. Most homes under $350,000 are going under contract within 24 hours. And rates aren’t going down at all, so waiting to put in a bid at a lower rate is probably a bad idea. Especially with housing costs continuing to increase.
5. Stick to Your Budget
Remember that budget you set when you figured out how much you can afford? Try not to stray too far above and below that number. Too high and you risk being house poor, or not having any leftover money after you’ve purchased the house. Too low and you might sacrifice some of your must-haves. Don’t feel pressured to spend more than you are comfortable with or try to beat another buyer’s offer.
6. Find an Experienced Realtor
An experienced realtor is going to know the area, and they’ll be able to help guide you through the steps needed. Not only that, you likely won’t be able to even look at some houses without a realtor. Don’t just hire a friend or family member, find someone who will help you get in on the competitive offers.
7. Get A Great Rate
The SPE (SRE Professional Experts) through SRE.com can get you an incredible rate. As of this writing as low as 1.55%. A rate like that will make it easy to relax into homeownership, and alleviate the worries about being house poor. Plus, the SPE will even rebate 20% of their commission straight to the customer.
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