Did you know that around 2/3 of households headed by young adults were rentals in 2017? Not everyone wants to be a renter forever, but when it’s time to buy a home for the first time, things seem tricky.
If you are ready to own your first house, you’re in luck! Plenty of people have done it which is how we come up with the best home buying tips out there. Read on to learn seven of them now.
1. Start Saving Early
The home buying process is a long one which means you should start saving as early as possible. This is one of the best home buying tips we can provide as you will have to cover the following:
- Down payment
- Closing costs
- Move-in expenses
- Home inspection
Although these expenses don’t seem like much, they can add up.
2. Set a Budget
You can’t expect to learn how to buy a house without having a price in mind. Before looking around, figure out how much you have to spend on a home based on debt, down payment, credit score, and income.
You can learn more here about setting a budget for the home buying process.
3. Boost Your Credit
Buying a home has a lot to do with how much credit you have. If you don’t know where your credit score stands currently, now is the time to check.
If necessary, boost your credit score before finding a property. To do this, pay bills on time, keep balances low, and keep your credit cards open.
4. Explore Different Mortgage Options
Purchasing a home has a lot to do with the mortgage. Luckily, there are different mortgages available that many homebuyers are not aware of.
The main categories are:
- Conventional mortgages
- FHA loans
- USDA loans
- VA loans
You’ll have the option to pick your mortgage term, but the length will affect your interest rate and monthly payments.
5. Compare Fees and Mortgage Rates
When you know how to buy a home, you are aware of how to look for different mortgage options as well. When you figure out your terms, you can request estimates from different lenders to find the best deal.
6. Get Preapproved
Although not a necessity, getting preapproved is another one of the great home buying tips. A preapproval letter will show home sellers that you are serious and trustworthy.
7. Choose a Great Real Estate Agent
Once you have your needs and wants down, you should find a real estate agent that will scour the market to find your dream home. This professional will also be able to guide you through the closing process and negotiate offers.
If you know a recent homebuyer, you can ask for agent referrals. You should interview more than one agent to find the right fit.
Home Buying Tips Interested Buyers Need to Know
Although simple, these home buying tips can prepare you for the long process that is to come. By no means is buying a home easy, but these steps can ease the stress a bit.
When you are ready to jump into the real estate market, consider this guide. You can find more advice on buying and selling homes on our blog. Check it out now!