Most home buyers find their new home after 10 weeks of searching. That is not a long time! It pays to be as prepared as possible before starting your homeowner journey to save yourself a lot of stress later.
Prospective homeowners may have heard horror stories from veteran house buyers. But purchasing a home is an exciting milestone! And it does not have to be a painful episode.
Follow these tips for purchasing a house to create a positive, memorable experience.
1. Get on Top of Your Finances
You are signing up to decades of debt for the sake of purchasing a home. It is an exciting and life-changing decision, but you need to be responsible.
Do not buy a new home with existing debt or without an emergency fund. If you buy a house and either you or your partner becomes unemployed or has a medical emergency, you will be in trouble.
Make a detailed budget before you do anything. Your monthly homeowner fees (mortgage, home insurance, etc.) should be no more than 25% of your monthly salary.
Also, take into account the following costs:
- Down payment of 20% or more
- Closing costs (3-4% of your house price)
- Home inspections
- Home improvements
Check your credit using Experian or a similar service to make sure it is good. Research first-time home buyer programs in your city or state.
Getting on top of your finances, no matter how long it takes, is one of the best tips for purchasing a home anyone could give you.
2. Get Pre-Approved For a Mortgage
If you are a new home buyer, getting pre-approved for a mortgage will increase your chances of sellers accepting your offers. This is crucial in a competitive market.
Your lender will need to check your income and credit score like any mortgage application. They will provide you with a pre-approval letter that you can show to home sellers.
3. Research Ideal Homes and Neighborhoods
You have likely started searching for your dream new home and ideal neighborhood. It is a long-term commitment, so consider the following factors:
- Schools
- Property tax
- Local amenities
- Entertaining
- Parking
One of the best home purchasing tips is to start viewing houses ASAP. Sometimes you do not know what you are looking for until you see it.
It is better to get open house fatigue and be hard to please than it is to jump at the first house you see despite the red flags.
4. Make a “Moving in” to Do List
No one needs to tell you that purchasing a house is stressful, but moving in can be stressful too. You have 101 things to do and they all need doing at the same time.
Prepare a moving-in list like this one at insurancehub.com. Write down what you need to organize first (home insurance, for example) and the most important repairs.
That way, you won’t panic and start ordering wallpaper when you have not yet arranged an electricity provider.
Prepare For Buying a New Home With These Tips
Buying a new home offers families a chance to change their lifestyles. Make the most of this fresh start by preparing yourself and your finances as much as possible for the transition.
Like this article? Browse our other home advice tips for more!