Buying your first home is a milestone that carries a lot of weight. You have a lot of factors to consider in the purchase, especially because it’s your first time. Here are some tips to make the process easier. More often than not, first-time homeowners have only a slight idea of how to buy a house.
Mortgage, down payment, loans – it can get a little overwhelming if you haven’t done it all before. Therefore, we put together this article to give you some tips about first-time home buying.
1. Establish your means of acquisition
First thing’s first: how are you going to afford your new home? A home is both an investment and a commitment, and for many people, it is the most expensive thing that they will ever buy in their lifetime. That is why you need a housing loan, otherwise known as a mortgage.
However, before you can get a mortgage, you need a stable income, good credit, and enough savings for the down payment. Once you’re good on all of these, you can start consulting with loan companies to see how much of a mortgage you qualify for.
2. Find out how much you can borrow
You can use an online mortgage calculator from a reliable home loans provider in Salt Lake City to find out how much of a loan you can take out, but getting a pre-approval will give you a more accurate value. Contact a lender for pre-approval before you shop for a house.
After doing this, a loan officer will look over your credit to find out if you satisfy the minimum requirements. The documents that you need to have on hand are:
- Paycheck stubs and W2s
- Past two years of tax returns
- Recent 2-3 months of bank statements
- Proof of down payment
A pre-approval is a pretty straightforward process, and you can get a result in about an hour or so.
3. Go home-hunting with a list of requirements and preferences
Once you are pre-approved and know your budget, you can start looking for your first house. But before you do so, it will be easier for you and your real estate agent if you have a list of specifications in mind. How many bedrooms do you need? Does the house have space for a home office or playroom?
Can it be easily baby-proofed? How about the size of the garage? There are lots of critical features you need to think about, but only list down those that you really want.
4. Have the home inspected
Some homes, even those that are brand new, may have underlying problems or potential problems that may unravel when you live there. Since mortgage companies do not require home inspections, you shouldn’t hesitate to hire a home inspector on your own accord.
If they find problems in the home, you can ask the seller to dock down the price of pay for the repairs themselves before closing.
Obviously, there are a lot more things that go on in the process of buying a home, but these tips should get you started. Before you go, here are some final pieces of advice for you:
- Buy a house only when you are genuinely financially ready
- Stick to your budget and don’t play into your emotions
- Don’t hesitate to negotiate the prices
- Save up a substantial amount for a down payment