So, you’ve saved and saved and finally made it here, to this point: you’re buying your first house. Congratulations! It’s an exciting time, to be sure, but it’s also likely a nerve-wracking one for you. This is one of the biggest buys you’ll ever make, and you want to get it right.
Luckily for you, plenty of people have done this already and have learned (often the hard way) what to do and not do. That’s right: there are good moves and just plain old mistakes when it comes to buying houses.
You should follow the steps to buy a house so you don’t make any of those costly errors. To help you out, let’s summarize three things that you, as a first-time home buyer, should know before you really get into this.
Save, Save, Save
Saving comes first. Now, before you jump up and say, “But I already saved for my down payment. That’s why I’m shopping for houses,” listen up.
We’re not necessarily referring to that. You’re right: down payments are nothing to ignore, and if you have yours prepared, you are off to a great start.
We mean all the other stuff you’ll need to start paying for when you do find your house. That means the utility bills, the internet bill, the property taxes, the school taxes, the garbage fees, sewer fees, etc.
As you can see, home ownership is quite the expense, so start saving now.
Don’t Go with the First Mortgage Offer
When you’re shopping for houses, you’ll probably need a mortgage to help you out. That’s fine, and there’s nothing wrong with it. After all, how many of us can afford $100,000 or more in cash?
The thing is, don’t necessarily take the first mortgage offer you get. Banks and other lenders look at lots of things when they decide to offer you a mortgage. From credit score to net worth to your job, it all matters.
You may be able to get a better interest rate from this institution over here as opposed to the one you’re used to using for loans. Shop around for the right price. It will only benefit you.
Use a Good Agent
Finally, you owe it to yourself to use a good real estate agent when you’re shopping. Agents know the industry inside and out and will be able to secure you house-tour appointments and even negotiate on your behalf for a better price on a house you like.
However, it’s important to remember that not all agents are equal. Read reviews of your agent before committing. Has this person helped others before you? How much experience does he or she have? All this matters. You deserve an agent who’s going to jump right in and get you what you want.
Also, be clear that you want a buyer’s agent, not a seller’s agent. A buyer’s agent gets paid from the proceeds of the sale, meaning you essentially use their services for free.
Keep these things in mind as you house hunt, and you will be in a much better position to land the home of your dreams.
