Buying a new home is a big decision even if you are buying it for the fifth time.
No matter how much you are experienced or not, there are so many things you should know. From figuring out your budget to hiring the right real estate agent, it will be a long process.
Before taking the plunge of buying a home for the first time, consider this checklist to ensure you are fully prepared for the process.
Determine your Affordability
The first step you have to do is to question yourself that how much money you need for a new home. Understanding what and how much you can afford is essential before you start hunting for homes.
You can find online home mortgage calculators to determine what you can afford. Keep in mind your current monthly expenses and income. You don’t only want to budget for the mortgage but for the other expenses that come along with owning a new home, such as taxes, insurance fees, utilities, repair costs, etc.
Deciding on a location that suits your affordability criteria is tough. If you are interested in buying property in Littleton, ask your agent to inspect what kind of homes for sale are best suitable for you.
Make a Long-Term Plan
The best way to decide which mortgage terms will suit you, ask the question to yourself that is this home will be your starter or forever home.
If you are interested to stay in the house for a long period, you should make several visits to the location. Ask your neighborhoods about the crime rates, availability of good education, and healthcare facilities.
You can make several visits at various times of the day to inspect the location. It will help you to figure out the noise around your property. Also, check the homes in your neighborhoods whether they are well maintained or not. In the future, this factor will impact the value of your home.
Get Advantage of Loan Programs
Various loan program offers relief in down payment as low as 3% to 5% to first-time home buyers. You can take this opportunity and consider purchasing a duplex instead of a single-family home.
This will also benefit you if find interest in remolding anything to rent your other unit. For example, a complete residential custom bathroom remodel or designing a new laundry area to attract tenants.
Generally, any real estate investor has to pay 20% to 25% down payments on the properties that are non-owner occupied. Therefore, getting a 3% to 5% down payment will be a great deal for you.
Find a Suitable Real Estate Agent
You may consider it an optional step but hiring a professional real estate agent will help you in the process of buying a new home. You will receive many benefits from a knowledgeable real estate agent from pointing out things that you want in your house to negotiating the price with the seller.
A real estate agent is well aware of the market value of other homes and the properties that are not publicly advertised.
You can get the advantage of buying your desired home before other buyers find out.
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