Posted on: 13 August 2021
The process of looking for the right home to buy, making an offer, and closing on the loan can take weeks and months, which you don't need to go about alone. With the help of a real estate agent and other professionals in the market, your experience can be more successful as you go about securing your personal residence, especially when it is your first home. Here are some recommendations to help you through the process to buy your first home.
Consider the Type of Property
As a first-time homebuyer, you may not have a lot of information about the market or the types of properties available and what they may mean for you in a home purchase. Your realtor can provide basic details about various types of homes and the benefits of each, and help you decide upon the type of home you choose to purchase. For example, if you are looking for a home in an urban area, you may need to look at townhomes and condos that are within your search area. When you shop for townhomes or condos, there is usually a Homeowners' Association (HOA) that manages the property and takes care of repairs and maintenance of the building and exterior. This reduces and sometimes eliminates your requirements for yard work and taking care of the exterior of the building, but there is an extra monthly HOA fee for the property owner.
However, if you want a home with a yard and privacy from neighbors, a single-family home is a good option. Single-family homes may come with a garage, either attached or detached. Otherwise, a carport is a secondary option for your vehicle and storage. Also, look at the size of the yard and if it is fenced-in or open and surrounded by undeveloped property.
Determine Your Down Payment
The amount of money that you have saved up to put toward your home purchase is going to make a difference in your financing and the overall cost of the home's purchase. Having more cash on hand to use as a down payment will reduce the amount you finance to reduce how much your monthly payment is, how much you pay in interest over the loan, and can also help you avoid paying for private mortgage insurance.
Consult with your realtor and your mortgage broker about how much you have as a down payment. Keep in mind you will also need some funds for closing costs when you sign for the home and an earnest money deposit on the home that you offer to purchase.
For more information about residential real estate, contact a local real estate office.Share