Purchasing a new home can be a daunting and exciting decision. Almost everyone new to home-buying finds themselves in a position of confusion and uncertainty during the whole process. Here are five tips for new homebuyers to ensure the procedure goes smoothly and without regrets.
1. Decide Between a 15 and 30 Year Mortgage
There is no word quite as closely associated with home-buying as mortgage. Homeowners have the choice between paying for their home over a period of 15 or 30 years. While a 15 year mortgage will be cheaper in the long run, it also demands higher monthly payments. Considering the annual payments and amount of money saved overtime can help you to decide which choice is best.
2. Think Big Picture
According to Investopedia, considering your big picture goals with purchasing a house can help make decisions such as size, location and budget easier. Some people buy a home for the idea of independence while others see it as a monetary investment as opposed to paying rent. Regardless, these motivations will help add clarity when buying a home.
3. Take it Slow
One of the major mistakes made by first time homebuyers is to feel rushed and pressured. Choosing the wrong house can possibly be the worst decision. For this reason, homebuyers should take their time looking at houses and only settle when they have found one they love. After all, this will be a place used every single day.
4. Ensure Your Credit
Just like any other form of major investment, house-buying requires a credit check. Banks and real estate agents won’t want to take the risk on an individual with poor or non-existent credit. According to Bank Rate, it is important to calculate this number beforehand to have an idea of what loans you qualify for. This can help clear up some financial confusion during the buying process.
5. Buying a home is no inexpensive task.
In fact, it puts a financial burden on most families. USA Today recommends to look for state or federal grants and assistance. Many states offer first time homeowners tax credits, lower down payments and even some intereste free loans.
Buying a home can seem like a scary process in the beginning. Beyond being a major financial investment, homes are also somewhat permanent. For this reason, first time buyers are recommended to take their time and do their homework. Finding the best house that works both financially and in terms of taste can take time. These five tips will help you to get started on the journey to owning your first home.