Purchasing your first home is a milestone, just like getting your license at 16, graduating college and getting married. It’s an exciting, yet foreign and somewhat intimidating time for most. Below are a few things to consider in regards to home buying for first timers to ease the process.
Start Saving Now
Start a savings account and begin putting money away now so that you have a hefty down payment when it comes time to purchase your home. Having a large down payment will reduce your mortgage rate and ultimately save you money in the long run. By having a small down payment you’ll be forced to obtain a mortgage for more than 80% of your home’s value, so you will have less of a return on investment. Making smart saving choices in the early stages of life is important for your future.
Don’t Rush The Home Buying Process
Home buying is just that: a process. Instead of rushing the process, adapt to it and enjoy the ride. Maybe you’re eager to move because you’re expecting a new baby, or maybe your lease is ending and you’ve decided to purchase instead of rent. Although these are viable factors, you should take your time in finding the home that’s right for you before purchasing, even if that means having to rent for a bit longer or stay with a family member. Attend as many open houses as you can and enjoy the experience!
Start A Maintenance Fund
With home owning comes headaches, especially when it comes to repairs. You are no longer able to call the complex maintenance personnel to come fix that leak or broken washing machine. Instead, all expenses are now coming out of your pocket. When home buying, you should consider setting aside some money just in case any emergency repairs emerge.