5 Things To Know Before Buying Your First Home
BY KAPINA LANSDALE
Buying your first home is nothing else if not intimidating. It may be one of the biggest investments in your life and you may not have an idea as to where to start, who to talk to, or if you are financially able to purchase a home.
Trust me, I speak from experience.
Prior to my husband & I purchasing our first home in 2015, I remember spending countless hours searching online “How to buy your first home” just to get an idea of what to expect.
When I decided that I wanted to become a Realtor, I knew I wanted to improve and increase the amount of knowledge out there for first-time home buyers. Truthfully, the home buying process isn’t that scary, it only seems that way because you don’t know where to start or what to expect.
As a part of my mission to empower first-time home buyers, I’ve compiled a list of 5 things you need to know before buying your first home.
Honestly, these are all things I wish we would have done or at least done better before we bought our first home. I hope this guide can give you a place to start and give your confidence with the process.
“As a Real Estate Professional, I strive to not only guide you through, but also educate you during this transaction.“
Research Your Financing Options
There are many different loan programs out there for first-time home buyers. Typically, they each require 3-5% down payment and here’s what that would look like: a $300,000 loan with a 3% down payment would equal to $9,000 down payment.
However, there are other financing options that will require as little as 0% down. Yes, I said ZERO! That means no money upfront for a downpayment leaving more money in your pocket for closing cost making it very affordable to purchase a home.
Talk with a local Realtor or lender about what programs are offered in your area and what you might be able to qualify for.
Calculate A Monthly Payment
Sometime the excitement of getting your pre-approval of your overall price, first-time home buyers get caught up but don’t realize what the price translates to as a monthly payment.
Take the time to figure out what monthly payment you can afford comfortably before you start shopping. Last thing you want is to fall in love with a home that is out of your price range.
If you’re currently renting, a good starting point can be your current monthly rent. Then you can decide if you can afford more or would like to spend a little less each month. Create a budget based on your current income and decide how much you can afford. Ideally, your mortgage payment shouldn’t exceed 30% of your overall monthly income.
List Your Needs Vs. Wants
It does you no good to start looking for something when you have no idea what you’re looking for, right?
Create a list of things you NEED in your new home. This could be something like the number of bedrooms or bathrooms, location, or lot size. These will be the items that will be non-negotiable for whatever home you buy.
Next, make a list of things you WANT in a home but ultimately you could go without and aren’t deal breakers. This could be like a pool, particular color cabinets, or landscaping.
Be sure to share this list with your Realtor so they may have an general idea of the type of home you’re looking for and save you time by eliminating those that don’t meet your needs.
Connect With Your Realtor
It’s important that you meet with your Realtor, ideally in person, as early in the process as possible. This is where I believe taking a consultation approach is a key step.
At this meeting your Realtor should help put together a custom road map for your as well as educating you through the entire process.
Plus, your Realtor will be working for you, so it’s critical that you feel comfortable and that they understand your needs. This initial meeting is a good opportunity to make sure they are the right fit for you.
You Won’t Pay a Commission
Yep, you read that correctly. As a buyer, you typically don’t have to pay your Realtor a commission for their services. Cool, right?!
When a seller meets with a Realtor before they list their property for sale, they agree to pay a certain commission that will be split between the listing agent and the buyer’s agent.
This is because in order to sell their home, seller’s rely on buyer’s agent to bring potential buyers to their home which will eventually lead to a purchase.
Worry no more, you won’t be paying out of pocket for your Realtor’s help!
Happy House Hunting!
Looking to Buy a Home?
If you or someone you know is looking to buy a first home, please Contact me. I would be honored to help make home ownership a reality. For more helpful tips and island information Join my Newsletter and be the first to get notified on new updates.