Buying your first home can be an exciting and happy time. But it can also be frustrating and confusing if you don't know what to expect. If you're planning to buy your first house soon, use the following tips:
Make Sure You're Pre-Approved for a Mortgage
The last thing you want to do is begin searching for your first home without having any guarantee that you have the funds to make the purchase. Getting pre-approved for a mortgage is essential for a first time home buyer, as it lets you know what you can afford to purchase and what your interest rate will be, while also ensuring that you have already secured a loan to purchase a home.
Take Your Time Selecting a Real Estate Agent
One of the best resources a first time home buyer can have is an experienced real estate agent. When you're buying your first house, make sure that you work with a real estate agent who is willing to answer your questions and guide you through the buying process. Ideally, you should try to work with an agent who is a buyer's agent, and it is a bonus if you can find a real estate agent who specializes in working with first time home buyers.
Be Realistic About Your First Home
As a first time home buyer, you probably will not be able to purchase your dream home that you plan to live in for the rest of your life. Compromise can go a long way in ensuring that you and your family find a home that meets all of your needs where you can be happy. It is a good idea to create a list of "must haves" for your real estate agent so he or she knows what to look for.
Avoid Making Large Purchases
After finding your first home, making an offer, and having your offer accepted, avoid making any big purchases or financing anything. When you're in escrow it is in your best interest to keep your finances as stable as possible. Don't purchase a new car or pay for a room full of furniture with your credit card—these charges can affect your credit score and income to debt ratio, which can potentially put your mortgage loan at risk. Save any type of spending that you want to do until the deal closes and you have the keys to your first home