Buying a home is one of the most expensive purchases you will make in your life. With this being said, you want to make sure you’re well-informed on the ins and outs of buying a home.
From securing a mortgage to negotiating a fair price, there’s a lot you need to know before you sign the dotted line and move into your new abode.
Because this is your first time buying, you may not know where to start this long and sometimes complicated process. That’s where we come in to help. Today, we’re going to go over all there is to know before buying your first home. Take a look!
1. Get Pre-Approved for a Loan
Before you begin searching for the home of your dreams, you need to make sure you have adequate funds to afford it. Most people don’t have $200,000 on hand to pay for a new house upfront. This means you most likely need a little help from a bank or lender.
To get the best mortgage rate, you’re going to need a good credit score to prove to your lender that you will be able to pay them back in full and on time. As a general rule of thumb, keep your credit score over 700. Anything lower may result in a loan with high-interest rates or no loan at all.
If your credit score is lower than 700 and you’re having trouble getting pre-approved for a loan, don’t fret. There are plenty of other ways you can still buy that house you want.
One way is by working with direct hard money lenders. A hard money loan is different from a regular mortgage in that the value of your home’s value is used as collateral, whereas a mortgage uses your assets as collateral if you default.
2. Create a Budget
Once you’ve been approved for a loan, it’s time to create a budget. There’s a lot more to home buying than just the property value. Other expenses you need to consider include:
- Home insurance
- Repair costs
- Property taxes
- Association fees
- Appliance and furniture costs
- Down payment
- Closing costs
If you’re worried about these costs, you may not be ready to purchase a home. Or, you may need to consider shopping for a more affordable home in a different area that has lower property taxes and less square feet to furnish.
3. Find a Realtor
With your budget in check, you’ll be able to find a realtor who will help you find the perfect home and negotiate a fair price. An agent who is well-versed in the area you’re looking in will be able to tell you about the characteristics of the neighborhood, what the schools are like, and the property value of other homes in the area so you don’t end up overpaying.
Identity Magazine is all about guiding women to discover their powers of Self-Acceptance, Appreciation, and Personal Achievement.
We ask that every contributor and expert answer the Identity questions in keeping with our theme. Their answers can be random and in the moment or they can be aligned with the current article they have written. In that way, and as a team, we hope to encourage and motivate each other, thus inspiring you to Get All A’s.
What have you accepted within your life, physically and/or mentally? Additionally, what are you still working on accepting? Now, we’re not talking about resignation, rather stepping into, embraced, and owned.
I have accepted that it is impossible to please everyone. I struggled for years to fit in with what I thought were the cool kids, but in the end, I was unhappy because I felt I could never be my true self.
Today, I now accept that to be my true self, as an individual, means that not everyone will like me and that I can’t please everyone. But I now understand that being myself brings to me the most fulfilling relationships
Appreciation is everything. What have you learned to appreciate about yourself and/or within your life, physically and mentally? On the other hand OR in contrast, are there elements of who you are that you’re still working on appreciating?
I have learned to appreciate my family more, flaws and all. When I was young, my parents had a very busy life and struggled to just make ends meet in our family. As a result, I became resentful that they never spent enough time with my siblings and me.
Now I appreciate them more because they worked so hard for our family, and I am grateful now that I can have a stronger relationship with them as an adult and have a truly fulfilling relationship with them.
Share with us one of your most rewarding achievements in life? Tell us not only what makes YOU most proud but also share the goals and dreams that you still have.
The most rewarding thing I have ever done was when I decided to study abroad in Barcelona for a semester. I really felt like I broke out of my shell.
Being in an unfamiliar place where you can’t speak the language is difficult, but I gained so much confidence in myself that I can achieve my dreams in life. I still have a passion for travel. I would love to become a travel writer one day and circle the globe!