Are you on the hunt for your first home? Before you make any final decisions, explore our list of essential tips for first-time home buyers in 2022 to ensure you get a home at an affordable price.
Know Your Budget
The first essential tip for first-time home buyers in 2022 we can offer is to know your budget and stick to it. Before looking at neighborhoods and searching for houses, organize your finances and what you can afford.
Pro Tip: Don’t forget to include the down payment, closing costs, and moving expenses into your budget.
Be as thorough in your research as possible, set the parameters for your budget, and stay disciplined. Whether this is a starter house or a forever home, you don’t want your first house to become an albatross on your financials.
Use Local Help
If this is your first time buying a home, there’s naturally going to be something you may not understand or are inexperienced with. Utilizing local resources, like a real estate broker, is the best way to ensure these knowledge gaps don’t hurt you.
There are many advantages to hiring a local real estate broker, but the main incentive is that they know the area and have the experience to prove it. They know a good deal when they see one for your budget and will help you during the fraught negotiating process.
Get Preapproved
A letter of preapproval means the lender you’ve chosen to borrow from for your mortgage agrees in writing to fund your loan. The lender will consider your household debt payments, credit score, income, and other factors to determine your mortgage budget.
This preapproval and the approximate down payment will give you an estimated price for your new home. A preapproval letter shows the seller you’ve got stable financial backing and can close quickly. The preapproval will create tangible parameters for what you can afford.
Decide Where You Can Compromise
Maybe you’ll get lucky and find everything you’ve ever wanted in your first home, but it’s a rarity. There are some things you want and some you need, so come up with a list of areas you can compromise and where you can’t.
Perhaps you need an office space but only want a basement. This distinction will make it easier for yourself and your real estate agent to know your priorities when searching for a home.
Get a Home Inspection
Before closing on your first home, a home inspection is vital to ensuring you’re purchasing a reliable piece of property. The closing process can move fast after the seller accepts your offer, and they may even offer a lower price if you skip the home inspection. This is a red flag.
A home inspector is an impartial judge of the home’s value and will give you an honest assessment of the property, from the floorboards to the roofing tiles. They may also recommend further inspections if they find something concerning. Make sure the home you’re buying doesn’t have skeletons in the closet before closing the deal!