Spring is the most popular time for purchasing a new house. However buying your first home can be a daunting task, even for those who actually payed attention in math class. Luckily there are a few ways you can save yourself a headache or two through the process. We talked with Century 21 Foxx Realty's Rhonda Lodwick for some insight into buying your first home.
PRE-APPROVAL IS THE FIRST STEP
- Finding out how much you'll be able to borrow from the bank is the most important step. This way when you actually start the house shopping process you only look at homes that you'll be able to buy. BUT, be careful that you....
STAY WITHIN YOUR OWN PERSONAL BUDGET
- Even though the bank may approve you for a $300,000 mortgage you should decide whether you can actually afford it. Ideally you'll still be able to set some money aside even after making a major purchase such as your first home.
FIND A REALTOR YOU LIKE
- You have your choice of any realtor for the area. If you're not familiar with them it could be as simple as calling a real estate office or visiting an open house on the weekends. Once you find them, stick with them! They'll be able to show you any and every listing in our area regardless of which company they work for.
BE SURE YOU'VE SAVED ENOUGH
- Most of us know that you have to put at least 5% down to purchase the home itself but there are some other factors to consider. There will be closing costs, lawyer fees, and the land transfer tax. You should save an extra 2% on top of your down payment for this.
MAKE A LIST OF WANTS
- This one can be tough if you're on a restricted budget but don't hesitate to make yourself a "wish list" for your first home. If you want to live in a certain area or close to school/work then make sure to let your realtor know. This way they can keep an eye out for a home that will suit your wants and needs. Finally....
SET A REASONABLE TIMELINE
- If you know exactly what you're looking for then give yourself a few months to find it. The market is ever changing with new houses going for sale every day. Your realtor will make sure to let you know as soon as your ideal home hits the market.