A Guide for First Time Home Buyers

Posted by Rebekkah On January - 13 - 2016 0 Comment

Buying your first home is one of the few largest milestones you’ll experience in your lifetime. It will be one of the biggest expenses you ever encounter, but could also be one of the best investments you ever make.

First time home buyers will likely feel the pressures of real estate, loans, and money. So many people rush into home ownership without giving it much thought or research, so it’s important that you do thourough research when buying your first home. Before you begin your research, you should recognize a few things about your real estate needs.

  1. What do you need in a home to suit you needs? There are countless real estate options to consider, for example, single-family homes, apartments, duplexes, condos, townhouses, or multi-family homes with multiple units. There are pros and cons to each of these real estate options, but you must decide what will meet your needs.
  2. What kind of features are you interested in? As much as your real estate needs are important, so are your wants. You might have specific requirements when looking for a home. For most, it’s location. For some, it’s simply the amount of bedrooms and bathrooms. For others, it’s a move-in ready home with appliances and up-to-date features.
  3. What can you afford? Buying a home will be the biggest purchase you ever make. Consider how much you can afford in monthly mortgage payments. Some homes or condos lend themselves to less cost due to being a fixer-upper, and longer commutes to cities can also bring down cost. First time home buyers will need to weigh their options to determine what the best real estate option is for them.

Understanding the Buying Process

As a first time home buyer, you will need to understand the buying process. Part of the buying process is the search, which can be a smooth process if you receive the right help. To do this, you will need to take advantage of all available real estate options, meaning, contacting several real estate agents to see what they can do for you, search listings online, and go out searching in desired neighborhoods.

After finding a home that you believe is your perfect dream home, secure financing by obtaining a loan, but also understand your finance situation. Next, make an offer. To make an offer, a real estate agent can help decide what is the best offer for the home you want. Your real estate agent will present the offer to the seller’s agent, and they can either accept the offer or give a counter-offer. You can accept the counter-offer or continue to go back and forth until you both reach an agreement. If you reach a deal, the process then becomes escrow. What is escrow? Escrow is a short period (about a month) in which the seller takes the house off the market with agreement that you will purchase the house. During this time, home inspections are recommended to see if there is anything wrong with it. If any repairs are needed, you can negotiate with the seller to bring the price down or pay for the repairs themselves.

Finally, your last step in the buying process is to close or move on with the search. If you don’t find anything glaringly wrong with the home and it’s the home for you, you will likely close, however, some people searching for a home might move on if they find it’s not what they need and want. In the final stages of buying the home, you might have the home appraised, do a title search, and obtain a private mortgage insurance. You may not choose to do these tasks, but some home buyers will find it has helped.

What You Should Do After Buying Your First Home

Now that you’re a new homeowner, what do you do next? Well first, keep saving. You will experience many expenses aside from monthly mortgage payments. You might have to replace siding or the roof. It’s recommended that you start an emergency fund. You should also perform regular maintenance on your home to ensure that it’s safe at all times.

Buying your first home will be one of the most rewarding accomplishments you make, so take your time, and complete proper research to find real estate that meets your needs.

Thank you to Valley Brokers, a a premier real estate company for Corvallis, Albany, and Lebanon in Oregon, for providing this post.

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