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5 Things Every First Time Home Buyer Should Know

February 9th, 2016 4:42 PM

There comes a time in everyone’s life where you’re forced to take on the role of a rookie. Just think about your first day of school—your anxiety level was probably shot through the roof, worried about who you’d befriend and how you’d cope being away from home. Though your first try at learning the ropes was an indescribable experience, you were ironically able to get into the swing of things. You then learned new strategies that helped with making convenient, thoughtful decisions along the way.

Whether you’re moving off your friend’s couch or finally leaving the apartment you left your mark on throughout college, buying your first property is a huge step. Kudos to you! Almost identical to the first day of school, it’s extremely important to prepare, educate yourself, and be patient.

Because it can be difficult to know what to expect, we're here to help you with your homework.

Here are 5 tips every first time home buyer should know:

Save Money

Before you think about owning property, save as much money as you can. Closing on properties require a lot of upfront costs: such as moving expenses, down payments, new furniture, etc.

Create A Budget

The budget is a critical component when buying a home. Be sure to construct one that corresponds well to your monthly income so the mortgage payments are feasible. Ideally, one would already have a sense of how much they can afford before submersing into a deal. Bankrate.com states: by calculating debt-to-income ratio and factoring in a down payment, you will have a good idea of what you can afford, both upfront and monthly.

Don't Create Any New Debt

Studies show that if your debt ratio does not exceed .36 percent, take steps to reduce it before seeking out a lender. So first things first, stop buying new things. No need for car payments or getting bamboozled into opening up a new credit card to get .50 percent off your total at a retail store. And also, if it doesn't hinder your down payment, consider settling small debts. There's a goal to stay abreast of.

Broaden Your Horizons

Yes, location is critical to the value of a home. Now that we have that out of the way, you may have to broaden your horizons simply because homes in your price range may not be available in your target area. This is where research comes in handy. Prepare a plan. If this is the place you plan to settle and start a family in, consider the school systems in the area, the value of the surrounding homes, and the community's development.

Be Realistic

First time home buyers often admit that the process is more tedious than what was initially expected. Give up the misconception that it will not be stressful, time consuming, and an overall hassle. Though you'll run into some bumps and bruises, continue to work hard to get the home that you want.

Posted in:Facts and tagged: Appraisals Real Estate Home

Posted by Michael Anthony on February 9th, 2016 4:42 PMLeave a Comment

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