Ready to buy a house? As a first time home buyer you probably have a few questions -- purchasing a home can be a complex process that is tricky to navigate (especially if you've never done it before). Having to wrap your head around loans, down payment, property taxes, and even those dreaded bidding wars is enough to overwhelm just about anybody.
However, Your Journey Real Estate is here to help!
What To Know Before Buying Your First Home
Start Saving...and then save some more!
The first step to purchasing a home is saving up for one. The most obvious reason to save is a down payment; the ideal down payment is 20% of the total price. This can be a lot to manage but will pay off in the long run as buyers who put less than 20% down are subject to additional fees. That said, 20% is not required and mortgage down payments can be as low as 5-10% or even 0% if you qualify for VA loans.
What else should you save for?
Down payments aren't the only expense you'll need to save for. Keep in mind that you'll also have to save for closing costs when buying your home. These can be quite the burden if you're not prepared for them so it's best to start saving early. It's also a good idea to prepare for any repairs or maintenance your new home may need.
Evaluate Your Finances
Aside from saving as much money as possible for your new home, you also need to have a thorough analysis of your financial situation to figure out what you can truly afford.
- Know your credit score so you can be prepared for what loans you may qualify for.
- Consider your future and how it may impact being a homeowner (do you want kids? -- if so, will this home accommodate for them?, will you have the same job in 5 years?...).
- Analyze your expenses and whether or not they may increase after purchasing a home.
Define Your Needs and Your Wants
Before jumping right in and looking at properties, you should figure out what you need in a home versus what you want. There may be certain aspects of a property that you simply can't live without as well as some things that you'd love to have but aren't deal breakers. Defining your needs and wants will allow you to narrow your options and search for homes for efficiently.
Work With An Expert
Finding the right real estate agent for you will save you time, stress, and money when buying a home for the first time. It's important to work with an expert who understands your needs, wants, finances, and most importantly, how to find the right home for you. From contract to closing, a good real estate agent will help you navigate through the often challenging process of purchasing a home. Be sure to shop around and find the right agent for you.
Start Your Search
By far, the most fun part of the entire process is house hunting. Looking around, admiring all the beautiful properties, and imagining what it's like to live in them can be really exciting. If you're not sure where to begin, start by viewing some properties like these homes for sale in Vermont and ask your agent to set up an appointment to view the houses that catch your eye.