First Time Homebuyer Tips

The decision to go from renter to homeowner is a big one. When you own your own home, there are a lot of responsibilities, but there are also a lot of benefits.

Buying a home for the first time can be intimidating. The reason it’s daunting is that, for most individuals, it’s the single largest purchase they’re ever going to make.

To ease your client’s fears and ensure they make the best choices, there are some things that every first-time home buyer ought to know.

Follow this advice to ensure their home buying experience is successful:

1. Determine what they’ll be able to afford. Before they start house hunting, figure out exactly how much they can afford to spend.
   • Make a budget by taking their monthly income and then subtracting their monthly expenses. This will tell them how much they can afford to spend on their mortgage payments.
   • As a general rule of thumb, it’s recommended that they spend no more than 28% of their income on housing costs.
2. Determine what their monthly housing costs will be. Their monthly housing costs include mortgage payments, property taxes, and homeowner’s insurance.
   • They can get preapproved for a loan to figure out their mortgage payments. The lender will tell them the interest rate on their loan and what the monthly payments will come out to.

• Before buying a house, they can ask what the current property taxes are, so they have an idea. Sometimes, their property taxes are added to their mortgage payment.
• To figure out how much they might spend on homeowner’s insurance, they can contact different insurance providers for quotes. Shop around for the best rates!

3. Get in touch with a real estate agent. After they’ve done their homework, it’s a good idea to use a realtor to help them find the perfect house. If they decide to go house hunting on their own without a realtor, they’ll be limiting their options.
   • A realtor can quickly and easily look up all available properties in a particular geographical area and price range.
   • They can also get them in to see vacant homes that they cannot do independently.
   • A realtor will also help them navigate the mountain of paperwork that must be filled out when purchasing a home.

Keep These Tips in Mind While House Hunting 

1. Location is key! Let their realtor know what’s important to them, and they’ll show them houses in a fitting location.
   • If they have health concerns, they may want to buy a house near a hospital or their doctor. They’re probably looking for a house near a school if they have children. Perhaps they want to be near restaurants and shopping. Figure out their location needs and communicate them.
2. Bring a digital camera and a notepad. It’s essential to gather information about each house and review it later. They want to be sure of their choice before buying a house.
   • Make notes about each house they visit, jotting down what they like or don’t like. They can even rate each house on a scale of 1 to 10.
   • With a digital camera, they can take many pictures of the houses they look at. This will help them remember some details after a long day of house hunting.
   • After looking at several homes, go back to their top choices for a second look.

At this point, they’re ready to make an offer to buy their first house. Their real estate agent will give them some advice about how much to offer, and then they’ll deliver their offer to the listing agent. If all goes well, it won’t be long until they’re moving into their first home.