Buying your first home is exciting—but it can also come with more than a few headaches! And until you complete the process from start to finish, you may not know what to expect. That’s why we’ve prepared a quick crash course with the tips that every new home buyer needs to know.
Fast Facts to Remember When Buying Your First Home
First and foremost, you’ll want to consult your real estate agent if you ever have any questions. Remember, it’s their job to help you before, during, and even after your big purchase!
Feeling a little overwhelmed? Here are a few additional pointers to get every new home buyer started.
Pay off most (or all) of your debt first
Before you take on a mortgage, try to pay off any lingering credit card, student loan, or auto loan debt first. Having less debt will also encourage lenders to offer you a more favorable mortgage rate!
Make sure you have enough for a down payment
Typically, buyers put down around 20% of a home’s value, but this number can fluctuate depending on your loan. The more money you pay up front, the less interest you’ll have to pay over the lifespan of your mortgage.
Get pre-approved for your mortgage
It’s crucial to shop around for a mortgage that suits your needs. Once you’ve found the right fit, getting a pre-approval letter will make you stand out as a more serious buyer. Some agents won’t even work with you if you aren’t pre-approved!
Prepare for additional expenses
Before you commit to buying, have around 2% to 5% of a home’s purchase price set aside to cover any additional expenses. You’ll want to be prepared for closing costs, repairs, appraisal fees, legal fees, lender fees…the list goes on.
Check out open houses
Not sure what you want in a home? Want to scope out a neighborhood? Open houses are a low-pressure way to explore the latest listings and learn more about an area. There’s always an agent on-site, too, so you can ask them plenty of questions.
Create an emergency fund
Let’s face it—owning a home can be expensive. Before you tackle that responsibility head on, you’ll want to have an established emergency fund so you’re prepared for the challenges of homeownership. Most financial experts recommend saving enough for three to six months of expenses.
Determine your wants and needs
It’s easy to get wrapped up in trendy upgrades and changeable features when you’re looking at homes. To keep yourself on track, make a list of what you really want, need, and would like to have in your first place. Outlining your priorities can also help you narrow down your options.
Location is key
You can change a lot of things about a house, but its location isn’t one of them. It’s best to be as hyperlocal as possible—and that means focusing your home search on just a few neighborhoods that you really love! As you choose an ideal location, be sure to consider your commute, amenities, and what’s around.
Work with a great local agent
Like we mentioned before, your agent will be an integral part to the buying process. That means it’s best to interview at least a few candidates before settling on “the one.” You’ll want to make sure they prioritize your goals, but you should also get along on a personal level, too.
Have fun!
The home buying process might seem like a roller coaster, but you should never forget to enjoy the ride. And when you finally have the keys in hand, take plenty of time to celebrate this new milestone. Your next adventure is just beginning!
Are You a New Home Buyer in Minneapolis?
If you’re thinking about buying your first home in Minneapolis, the David Azbill Group is here to help! We have plenty of resources to help you out, so just give us a call to learn more. And if you want to get a head start on finding your next home, check out our handy search tool.