First-Time Home Buyer Tips
Purchasing your first home can be stressful and super nerve-racking! But, these tips will help you while you navigate the process and allow you to avoid mistakes along the way.
What You Should Do
Set a Budget (and Stick to It)
Speaking to a lender should be one of the first steps you take if you want to look at homes and make offers. Having a pre-approval letter from a reputable lender will make your offer much more attractive to sellers and give you an edge in negotiations. Your lender will also be able to nail down your financial situation and let you know exactly what you can afford.
While it’s tempting to look at homes way outside your budget, it can also be a buzzkill. Try to keep your search within your budget. Remember - there are lots of costs when buying a home from title and escrow fees, closing costs, and inspections. Make sure to take those into account along with utilities and homeowner’s insurance costs.
Decide Between Your Needs + Wants
Come up with a list of features you want and features you need. Figure out what is a non-negotiable to you. When trying to find your dream home, it helps to know exactly what you want. This will help when searching for homes online by filtering out homes that don’t match. Ideally, your search should be broad enough so you have plenty of options, but also narrow enough so you aren’t overwhelmed with homes that won’t work for you.
Hiring The Right REALTOR®
Once you’re ready to begin seeing homes, your REALTOR® can set you up on the Multiple Listing Service (MLS) with a personalized home search. You’ll be notified immediately when a property hits the market that matches your needs. At Myriad, our buyer specialist is highly skilled and has a vast knowledgable about the Phoenix Metropolitan area.
What You Should Avoid
Not Saving Enough
After you’ve saved up for your down payment, homeowner’s insurance, and closing costs, you should make sure you still have money left for the things that go inside the home. In other words, furniture, appliances, decorations, new paint, and every other update that you want to make.
Buying A Home For Current Needs Only
Finding homes that match your current needs can be relatively easy. But, you should look more into the future if you plan on having a family. That may mean that you need to purchase a bigger home, so you can grow into it instead of out of it too fast. If you find a home that you think is the winner, take into consideration your future needs and wants.
Buying a home means that several negotiations will happen along the way. If there are major repairs that need to be done on the property, don’t automatically change your mind or even fix them into your budget (but do make sure to figure in some repairs). During the inspection period, you will be able to ask the seller if they will cover any or some of the repairs on the home. You may find out that the seller will negotiate with you to get the house off the market as soon as possible.
If you have any questions about first-time home buying, schedule a consultation with one of our REALTORS® today!