Deciding to purchase a home is the big step in what many first–time home buyers discover to be a daunting process. From searching properties to finding the perfect realtor; from worrying about buyer’s remorse to handling your finances, buying a home can be a complex course.
Thorough planning is the best way to avoid unforeseen dilemmas. According to the National Association of Realtors (NAR), first–time home buyers should carry with them – mentally if not physically – a checklist.
What does NAR recommend?
1. Create a wish list. Outline what you deem necessary in your new home, what features would be perks and be honest about the issues that would result in your ruling out a property.
2. Browse smartly. Look for homes in areas you’re already attracted to and browse within your budget.
3. Find a reputable, experienced realtor.
4. Inform yourself about the communities surrounding your potential new home. Learn about schools, crime rates and local businesses.
5. Get all the details about the property – tax records, repair records, pricing history, etc. You don’t want to be surprised when something unexpected is revealed later in the buying process.
Realtor Magazine also offers these tips for home buying preparation. They’re basic but weighted steps each potential home buyer should take before rushing into a decision.
1. Decide what you can afford.
2. Research potential places to live.
3. Start saving as soon as possible. A down payment on a new home is about 20% of the overall cost and closing fees range from 2 to 7 percent of the home’s cost.
4. Tidy your credit – getting financing will be nearly impossible if your credit is in a mess.
5. Research and determine your mortgage qualifications.
6. Get pre-approval for a home loan from your lender.
7. Calculate and understand the full costs of home ownership – taxes, insurance, maintenance fees, etc.
Buying a home, although sometimes a challenge, should be an exciting transition for you. Find an experienced realtor to help guide you through the process and approach each phase with open – mindedness and, most importantly, preparation.
