Wondering how to buy your first house? Not sure when to buy a home? Renting is okay, but why rent when you could build equity in something that’s yours?
Home buying can be intimidating if you’re getting ready to buy for the first time. Here’s a guide that walks you through how to buy a home, from start to finish.
1. Save, Save, Save!
Unless you plan to fully pay for your home in cash, you’ll need to make a down payment. Most down payments amount to around 20% of your mortgage, which is a hefty sum.
If you can, start planning for your first house long in advance. Work with a financial advisor to figure out how to save money quickly. You could also start a side gig or work a second job so the savings add up faster. It’s common for couples to work together to save for their first home, so don’t rule that out, either.
2. Fix Your Credit
Your number one obstacle to getting the mortgage you want could be bad credit. If you have outstanding debts, pay them off.
Sometimes you can negotiate with creditors to get old debt written off. It’s never a good idea to add more debt onto debt you already have, so try to resolve your credit issues as soon as you can.
3. Know Where You Want to Live
If you are tied to one area because of work or family, you’re not alone. But it’s always helpful to know the type of house you want. Make a list of wants, needs, and absolute no-nos.
If you’re looking along with a partner, find a way to compromise. You probably have a shortlist of neighborhoods that you like, so start there and do some research on what home features are available.
4. Research Mortgages
There are a few types of mortgages to choose from, and some are better for first-time home buyers. Your best option will depend on your financial situation and what your long-term goals are. To figure out which mortgage you should choose, visit eMortgage Solutions and talk with an expert.
5. Start Searching
When you’re ready to start searching in earnest, it’s helpful to hire a real estate agent. They will help you find a home within your budget and avoid common pitfalls that new homeowners can fall into. Most agents have a repertoire of great tips for homebuyers in their area, so they’re a great resource.
6. Get Your Mortgage (Or Pay Cash) and Home Owner’s Insurance
Once you find the home of your dreams, get your mortgage. Or, if you have the money saved up, pay cash!
However you decide to pay, be sure to get good homeowners insurance. It will protect your assets and keep a roof over your head in the event that something goes wrong.
7. Have the House Inspected and Make Any Repairs
Before you close on your new home, get it inspected. If you’re not sure who to hire, your real estate agent or mortgage firm should be able to recommend someone in your area.
8. Close on Your New House
After you’ve completed all the other steps in the home buying process, go ahead and close on your new house! Congratulations! You did it! Sign the paperwork and grab your new keys.
Now You Know How to Buy Your First House
So, there you have it. That’s how to buy your first house!
We hope this article has taken some of the mystery out of the home buying process for you.
Buying a house is an opportunity to establish your financial future and one of the best financial investments you can make.
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