In a sellers market where inventory is low, it can be challenging to find a home that fulfills your needs and fits within your budget.This is especially true if you are completely new to the homebuying process. If you are planning on purchasing your first home in the near future, here are some important points to be aware of so your homebuying experience is a pleasant and successful one.
Consider all home buying costs.
Most first-time homebuyers get so caught up in the cost of a down payment they neglect the several other costs associated with purchasing a home. Common examples include closing costs, private mortgage insurance (PMI), repair costs, homeowners insurance, and property taxes. With all this considered, you want to provide yourself with enough cushion to cover these expenses when formulating your budget. All too often, first-time homebuyers overextend themselves by purchasing a home that wipes out their savings account. You never want to stretch yourself too thin with your home purchase.
Pick a reputable realtor.
Do not underestimate the power of having a reputable realtor in your corner during your home search. They are an extremely valuable resource that will aid you in your home search. Not only can they lend their expertise, but they have access to resources that you do not have. If you are a first-time buyer, you want to select an agent who has experience working in your desired area(s).
Know your credit score.
The vast majority of first-time homebuyers do not have the ability to pay cash for a home and therefore need to qualify for a home loan. First-time buyers need to understand how your credit score affects your ability to qualify for a low interest rate, which in turn affects your monthly payments. It may be in the best interest of a buyer to spend some time improving their credit score before beginning their home search.