Buying a house comes with several challenges for the first-timers. But you are not alone facing the challenges and troubles; many people were, are and will be in the same boat. However, it is possible to cross the hurdles with ease only if you do some reasonable homework. Your dream of owning a house will come true only when you look for places that you can comfortably afford.
Irrespective of riches and needs, everyone has to undergo five common initial steps before looking for a suitable nest.
Assess Your Affordability
Even before going through the list of finished and upcoming projects for your dream home, you need to make an honest and intelligent review of your financial health. Check how much is left in your savings account and decide if it is enough to manage your living expenses for the next 3-6 months after making a down payment.
Next, look at your monthly budget chart to find out how much you are spending every month and where you are spending. In other words, you need to keep a tab on every dollar spent. It will help you find out how much you can spend as mortgage payment.
Look for a Good Deal
Even before meeting the lenders, you should know what makes a good deal. Some lenders offer excellent and extra benefits for first-time homebuyers. Only after you know about these programs in details, it will be easier to choose from the available options.
Talk to Lenders
Many realtors won’t entertain the clients who have no clear idea about how much they can spend. What is more, the sellers give priorities to the offers having a mortgage pre-approval. That makes it important for the first-time buyers to meet the lenders if they are not able to clear the payment at one go.
Any good lender will always look at your credit score to figure out if you are reliable and able to qualify for the amount you want to borrow. The lender will scrutinize both your assets and debts. The person will also introduce you to the programs designed to help you with the down payment. Having a good credit score definitely works in your benefits but that never means, the buyers with poor credit record won’t be able to find out a lender.
You can search online for a trustworthy lender. However, working with a live person is a better idea as he will assess your financial situation, meet your queries and suggest the ways to improve your credit score.
Meet a Real Estate Agent
Once you are done with your financial health assessment and discussing with a lender, it’s time to meet a real estate agent. Meet an agent who is reliable and works with a team of experts to offer suggestions on home inspections, insurance and many more.
Do Number Crunching Again after Finding a Property
Before finalizing a deal, throw a sharp look at your budget once again for an unbiased review of your affordability. Take into account moving expenses, an annual tax, maintenance expenses, and miscellaneous expenses apart from the price tag on the new purchase.
Purchasing a home for the first time is definitely the biggest decision in your life. Don’t take it lightly. Everything is not manageable at the eleventh hour. You need to do some paperwork, legwork, and homework to evaluate if you have enough financial strength to handle additional financial obligation. A small sacrifice is easy to endure but compromising the standard of living for a stretched period of time will overshadow your joy of buying a nest.