5 Smart Considerations to Buy Your First House

November 14, 2022

First Time Homebuyers: 

Buying a house is a big deal—probably the biggest purchase you’ll ever make. So, it’s natural to feel a little overwhelmed, even if you’re excited about the idea of owning your own home. To help set your mind at ease and put you on the path to success, we’ve compiled a list of smart tips for first time homebuyers.

What to do before you start looking for a home

Before you start searching for your dream home, there are a few things you need to do first. Here's a checklist of everything you need to do before you start looking for a home.

Know What You Want

Before you start looking for a home, it's important to know what you want. Do you want a single-family home or an apartment? Do you want a new construction or an existing home? Knowing what you want will help you narrow down your search and find the perfect home for you.

Know What You Can compromise On 

Of course, it's unlikely that you'll find a home that has everything on your list of must-haves. That's why it's important to know what you can compromise on before you start looking for a home. For example, if you really want a three-bedroom house but can't find anything in your price range, consider compromising on the number of bedrooms or the size of the house.

Find a Real Estate Agent 

Finding a good real estate agent is one of the most important things you can do when buying a home. A good real estate agent will help you find the perfect home and negotiate the best price possible. They will also be there to answer any questions you have throughout the process of buying a home. When looking for a real estate agent, be sure to ask family and friends for recommendations or look for online reviews.

How to find the right mortgage lender

A good place to start is by doing some research on different lenders in your area. You can read online reviews, talk to friends and family who have recently bought a home, and compare rates and fees from different lenders. Once you've narrowed down your options, you can start contacting lenders to get more information.

Get Pre-Approved for a Loan. Once you've chosen a few lenders you're interested in working with, the next step is to get pre-approved for a loan. This means that the lender will review your financial information and give you an idea of how much they're willing to lend you based on that information. Whether you're a first-time buyer or a seasoned veteran, getting pre-approved for a home loan is a smart first step in the home-buying process.

Compare Rates and Fees. One of the most important things to compare when shopping around for a mortgage lender is the interest rate and fees. Some lenders may offer a lower interest rate but make up for it with higher fees, so it's important to compare both before making a decision. You can use an online calculator to estimate your monthly payments based on the interest rate and fees from different lenders. This will help you figure out which option is best for your budget.

Choose a Lender You Feel Comfortable With. Finally, it's important to choose a lender that you feel comfortable working with. This person will be helping you finance one of the biggest purchases of your life, so it's important that you trust them and feel like they have your best interests at heart. Take the time to meet with different lenders, ask questions, and get a feel for their customer service before making a decision.

What to look for when touring potential homes

When you're a first time home buyer, it's important to know what to look for during a tour of a potential home. Obviously, you'll want to pay attention to the condition of the property and whether or not it meets your needs in terms of size and layout. But there are other factors to consider as well.

For example, you'll want to take note of the surrounding neighborhood. Is it safe and well-maintained? Are the neighbors friendly? These are important considerations, especially if you have children.

You should also pay attention to the home’s landscaping. A well-landscaped home can add curb appeal and value to your property, while a poorly landscaped home can be an eyesore. Finally, don't forget to ask about things like property taxes and HOA fees. Getting a realistic picture of all the costs associated with buying a particular home is essential to making a sound decision.

The importance of pre purchase home inspections

A home inspection is an examination of the physical structure and systems of a home. It's important to get one because it can reveal problems that you may not be able to see with the naked eye. These problems could be expensive to fix, and they could potentially impact your health and safety.

Why You Need a Home Inspection

The main reason you need a home inspection is to avoid any nasty surprises after you've already bought the house. A good home inspector will thoroughly examine the property and identify any potential issues. This way, you can either negotiate with the seller to have them fix the problem before you buy, or you can factor in the cost of repairs into your offer. Either way, it's better to know about potential problems ahead of time so that you can make an informed decision about whether or not to proceed with the purchase.

Another reason to get a home inspection is for peace of mind. Once you move into your new home, you'll want to be able to relax and enjoy your new space without worrying about what might be lurking behind the walls. A home inspection can help put your mind at ease by identifying any potential issues that need to be addressed.

Closing costs and other expenses associated with buying a home

Closing costs are fees charged by the lender at the closing of the transaction. These fees can vary based on a number of factors, but they typically range from 2-5% of the purchase price of the home. Here are some common examples of closing costs:

  • Origination fee: This is the fee charged by the lender for processing the loan. It is usually a percentage of the loan amount and can be anywhere from 0.5% to 1%.
  • Discount points: Discount points are fees paid upfront in exchange for a lower interest rate on the loan. One point equals 1% of the loan amount.
  • Appraisal fee: The appraisal fee covers the cost of having an independent appraiser assess the value of the property.
  • Home inspection fee: A home inspection is an important step in the homebuying process, as it can uncover any potential problems with the property that you may not have noticed yourself. The inspection fee covers the cost of having a professional inspector come out and take a look at the property.
  • Title insurance: Title insurance protects both buyers and lenders against any potential problems with the title to the property. The cost of title insurance depends on various factors, including the purchase price and location of the property.
  • Attorney's fees: If you decide to hire an attorney to help with your home purchase, their fees will be included in your closing costs

Takeaways

Purchasing a home is a huge investment. It's probably the most expensive thing you'll ever buy - so it's important to do it right. Do your research, work with a professional, and be prepared to compromise to find the house that's perfect for you. With these guidelines in mind, you're sure to find the house of your dreams without breaking the bank.

 

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JJ Sterling
As the co-founder of Urban Splatter and an architecture graduate from Chicago, I thrive on crafting a digital nexus where architectural innovation intersects with boundless digital opportunity. My academic roots in the Windy City's rich architectural tapestry inspire a unique vision for Urban Splatter's journey into the ever-evolving digital frontier of design. Join us as we navigate the exciting confluence of structure, style, and technology.

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