6 Simple Steps to Successfully Buying Your Very First Home

Ready to leave renting behind and relocate? Feeling confused about what to do next? You probably have a lot of questions about buying a home, which is perfectly normal—after all, buying a home isn’t like making an ordinary purchase. Here is a basic guide for finding and purchasing the home you’re dreaming about. 

 

Do Your Research

 

First, you need to figure out what kind of house you’re really looking for. Bob Vila says to begin by identifying what features are important to you, and are you willing to add them if you find something with good bones? For instance, how much space will you and your family need? Do you want a backyard? Is having a large kitchen important to you, or do you have other priorities? 

 

You’ll also want to carefully consider what kind of neighborhood you want to live in—according to some statistics, you’ll probably be there for several years. 

 

Determine Affordability

 

Once you have a good idea of what features are must-haves in your new home and which neighborhoods are appealing, it’s time to think about how much you can afford for your down payment and how you will secure a home loan. Some experts recommend capping your housing costs at 28 percent of your income. There are also cost-saving strategies like paying points on your mortgage (or “buying down the rate”) to reduce your monthly payment, or adjusting the overall term of your loan. 

 

Depending on your financial background and what kind of home you will be buying, you might qualify for an FHA loan. FHA loans can be very beneficial for first-time homeowners, especially if you cannot afford a large down payment and may not qualify for a conventional loan based on your credit history. Bigger lenders can walk you through the process of finding a mortgage that fits your financial picture.

 

Connect With a Real Estate Agent

 

With a home picked out and a feel for your finances, where should you start looking for the right real estate agent? Begin by asking family and friends for recommendations, and NOLO suggests you avoid using the same agent the seller is using. The right agent will be very familiar with the market in which you plan to buy. Keep in mind it can also behoove you to hire an attorney to help with paperwork and negotiations. 

 

Start Touring

 

Once you have found a real estate agent, you’ll want to begin attending open houses and touring homes that you think you might like. Don’t be afraid to ask the homeowner questions about the house when you get the chance, and look out for tiny details that can indicate the condition of the home, like cracks in the walls and sagging spots in the floor. 

 

Inspection and Appraisal

 

Before you decide you’ve found the perfect home, you’ll need to move forward with a home inspection and appraisal. 

 

Scheduling a home inspection is crucial—you need to know if there are any serious structural issues with the house, and whether or not there are any renovations that you should consider. An appraisal will give you an idea of the true value of the property so your mortgage isn’t overpriced (an appraisal will usually run you $265 - $280). 

 

Closing on Your Home

 

You’re almost at the finish line! Now it’s time to sign all of the necessary paperwork, and before you know it, you’ll be moving in. Your agent, the title company, and your attorney will lend a hand with the nitty gritty, and once you’ve signed all of the legal documents, you can start packing up to move!

 

Yes, finding the perfect home can be stressful, and it might take a while to put an offer on your ideal house. Make sure you prioritize carefully to meet your needs, then find the home of your dreams. When it’s all said and done, you’ll be celebrating your new homeowner status and all of the perks that come along with it. 

 

Landing the perfect place to settle into can be challenging, so let the experts at 2FindYourHome.com help! From connecting you with a trustworthy realtor to exploring the many homes available, it’s the perfect partner in launching your search for your dream home.