Buying your first new home can be a scary and exciting adventure. As one of the largest financial decisions in your life, it takes a lot of planning and saving to make the jump into homeownership. Your RE/MAX Showcase Agent will always help along the way, but here are a few things to keep in mind to set yourself up on the right path.
- Look at the entire cost of purchase
Buying a home does not start and end with the home itself. There are other factors to consider as well, such as insurance, new furniture and repairs. Take a good look at what you’ll need to spend in the first year, and then an estimate of the years following. It will give you an idea of how much to save and what spending to cut back on to make it work.
- Maintain good credit
Your mortgage terms rely heavily on your credit score, and just a few percentage points can save thousands in the long run. A few months before applying for a home loan, check your credit. Be sure to keep your credit balances at 30% or less of your total allowance, make your payments on time and monitor credit changes. You can find great tips on credit maintenance from the Consumer Financial Protection Bureau.
- Decide on what you want
Make a list of all the things you want in a house vs the things you can live without. You’ll have a clear head going into a showing and avoid feeling like you forgot something. You should also consider flexibility when it comes to finding a home. Make notes of things you can bend a little on so that your agent can target specific homes and show you the potential in them.
- Avoid urgency
As a first time home buyer, it can be overwhelming to see all the potential houses and great exterior views. But before you jump in and place an offer, try to remember a few things. Overspending will throw your entire budget off balance, so keeping your offer as close to what you can afford is best. Also, if a home inspection shows major problems that you cannot and don’t want to deal with, be prepared to walk out the door (even if it’s a dream home!). Your patience will be rewarded in the end, and you’ll be glad to have made the right choice.
New home buyers have a lot to consider, but your RE/MAX Showcase Agent has the skills necessary to help you the entire way.
Have any tips to add? Let us know in the comments below!