Set yourself up for success as a homeowner by planning and preparing before you even start your search for the perfect place! To purchase your first property like a pro, follow these five tips.
A down payment is a sum you pay upfront to make a large purchase, like a car or a home, and it can be a massive obstacle for potential buyers. The average first-time homebuyer puts down 20% of the purchase price as a deposit, so it is crucial to get a head start by saving up funds for your down payment (plus other costs which will arise in the home-buying process).
Saving up enough money can take some time, but here are a few tips to help you reach your goal sooner rather than later:
Before you start scrolling through Zillow or eyeing any houses with "for sale" signs in the yard, find out exactly how much home you can afford to buy.
It is easy to figure out how much you can borrow by checking online home affordability calculators or visiting your local lender. Online mortgage calculators and lenders will consider factors like your location, marital status, annual pre-tax income, anticipated down payment, and your other debt payments.
When it comes to a significant purchase like a home, knowing your credit score is not enough. You also need to check your credit reports, which record your history of managing and repaying debt. Think of it as a sort of report card banks and other companies examine before lending to you.
You are entitled to a free copy of your credit report every 12 months from each of the three nationwide credit reporting companies: Equifax, TransUnion, and Experian. If your credit score and report are lacking, you may want to take some time to work on your credit before trying to purchase a home.
Finding the right home is not a one-size-fits-all process. Although most buyers are on the hunt for single-family homes, it pays to look at other options, too.
While you might think you would love a sprawling estate with lots of space for gardening, after several weekends spent mowing the lawn and weeding the flowerbeds, you may change your mind!
Each type of property comes with its own pros and cons. For example, condos and townhomes might have less square footage, but they also require less maintenance.
A home is a considerable investment, and you will likely be living in it for a while. Be sure you take time to consider what your needs might look like in the future, as well as the present.
Another reason it pays for first-time homebuyers to start saving early for this significant purchase? As a buyer, you are responsible for more than just the purchase price when buying a home.
You will also pay closing costs, including property taxes, title insurance, transfer taxes, HOA fees, escrow fees, and legal fees. When saving up for your down payment, it is essential to keep these expenses in mind, too.
Becoming a homeowner is a huge achievement, and at Simply we are here with resources to help that process be as smooth as possible. Visit our blog for real estate tips to help you find and buy the perfect property.
Whenever you are ready to transition from that first house, or if you need to relocate sooner rather than later, we can help! At Simply, we believe selling your home off the market should be easy, so we make as-is cash offers for your home and close on your timeline.