Bryce Waite discusses the top tips first-time homebuyers need to know.
Listen to the interview on the Business Innovators Radio Network:
There are many things first–time homebuyers can do to prepare when looking for a home:
- Get Pre-Approved for a Loan. Before shopping for a home, it’s important to get pre-approved for a loan so they know exactly how much they can afford. A pre-approval not only helps make sure they’re getting the best deal on their mortgage but also shows sellers that they are serious about buying. It also gives them an idea of what kind of interest rate and loan terms to expect when they find a house that meets their requirements.
- Set a Realistic Budget. Establishing a budget is vital before committing to homeownership; not doing so can lead to financial hardship in the future. Consider all expected expenses, such as taxes, insurance, repairs, and maintenance, and ensure enough savings to cover them. Making a budget also helps ensure that people don’t get in over their heads by buying a house that is out of their price range.
- Research Mortgage Options. Different lenders offer different types of loans, so it’s important to research and find the one that best suits their needs. Some mortgages carry higher interest rates or require larger down payments than others, so it’s best to understand all the terms before signing on the dotted line. Consider seeking advice from a mortgage advisor for help navigating every detail of picking out the right loan.
- Inspect the Property Before Buying. Getting a home inspection is essential to ensure they’re not buying something with serious structural or environmental issues that could cost more. The inspection also includes a radon test so that they can provide their new home with no health hazards.
- Get Ready for Closing Costs and Other Fees. Closing costs are unavoidable when buying a house, but they may be higher than expected and vary from state to state. If possible, it’s good to save up in advance for these expenses so people don’t get caught off guard once they sign the paperwork. Other fees, such as title insurance, recording fees, and transfer taxes, should also be considered when budgeting for a home purchase.
- Prepare for Maintenance and Upkeep. Owning a home doesn’t stop at the closing table. They’ll need to make sure they’re prepared to handle basic maintenance and upkeep of their property, such as landscaping, painting, changing out lightbulbs, etc., throughout the year. Setting aside money in a “maintenance fund” can help cover unexpected costs that arise from keeping up their home. Allocating funds for regular upgrades or repairs will also help maintain the value of a property over time.
- Understand the Home Buying Process. Knowing what to expect before, during, and after buying a home can make the entire process less intimidating. Being aware of important deadlines and other details will help to stay organized throughout the transaction. Keeping a real estate agent in the loop is important so they can easily guide them through each step. Additionally, it’s helpful to consider attending workshops or seminars that lay out the ins and outs of home buying and provide valuable information on finding success as a first-time homebuyer.
- Don’t forget the Small Things. Once they’ve done all the hard work of finding a home and making it theirs, owners should not forget to enjoy the small things that come along with homeownership. Whether it’s adding their own personal touches or embracing the little quirks of their new space, they should take the time to celebrate the milestone they have achieved!
- Seek Help from Professionals. Last but not least, first-time home buyers should never hesitate to seek help from professionals who can guide them through buying their first home. Realtors, mortgage lenders, and financial advisors are all great resources for navigating the complexities of homeownership. Take advantage of their expertise, and don’t be afraid to ask questions – they’re there to help make the journey easier!
- Be Mindful of their Financial Situation. Before they start the home-buying process, it’s important to consider their long-term financial security. Their credit score, debt-to-income ratio, and other factors can affect their ability to secure a loan for an affordable home. Establishing an emergency fund in case unexpected costs come up during or after the purchase is also a good idea. Being mindful of finances now can help them avoid costly mistakes in the future.
Client Amanda P. says: “As everyone knows, now is a hectic time to buy a home. Bryce was always readily available to us whenever we were ready to put in an offer on a home, which was often on weekends or in the evenings. He took the time to contact the sellers, when possible, and reassure them that we were strong buyers. This definitely helped us with our purchase in the end. In addition to this, when we encountered difficulty obtaining a standard loan, Bryce and the team worked diligently to find us alternative solutions. Definitely dedicated and hardworking. We definitely appreciate the effort put forth by Bryce and his team.”
