Buying your first home represents a significant milestone in your life — it means you’re ready to put down roots and make the commitment to staying in one place for an extended period. However, the home buying process can be a daunting process, with intricate steps and long-term financial obligations that can affect the kind of home you can buy and how long you plan on staying in one place. Having a cheat sheet with some of the essential tips and tricks to help guide you through the home buying process is critical for first-timers. Below you can find Milano Realty Group’s Complete Guide for First-Time Home Buyers!
Set a Budget and Stick To It
When you purchase your first home, the temptation is there to shoot for the dream home out of the gate. After crunching the numbers and your income — and potentially your partner’s income — you should have set a number for what you can afford. However, suppose you fail to factor how much you pay for groceries, utilities, car payments, student loans, and other expenses into your monthly budget. In that case, those mortgage payments start to add up, and you have minimal wiggle room for unplanned expenses, such as something breaking and needing to cover repair costs.
Know The Kinds of Loans You Qualify For
There are many first-time home buyer loans and grant programs available; however, some first-time buyers do not take advantage of the available resources because they aren’t aware they exist! There are local, state, and federal programs that you can research up on, and we highly recommend learning if you qualify for one of these programs.
Save For That Down Payment
Most people will not be able to pay for their homes in full with cash; it just isn’t a feasible option. However, setting aside enough money for at least a 20% down payment on your home can help set you up with a more manageable mortgage rate. Avoiding potential landmines such as loans that do not require a down payment and adjustable-rate mortgages can wind up costing more in the future.
The Art of Sealing the Deal
You have your finances in order, you have a plan for paying for as much house as you can afford, and you have the loans lined up to help you pay for your home. You think you have all of your corners covered and are ready to step into your dream home. However, the down payment is the easy part; closing costs, prepaid expenses (including homeowner’s insurance), utility adjustments, and lender-mandated cash reserves can quickly drive up how much cash you need to finally close on your home. While the closing costs can vary from state to state and lender to lender, you can still get a good idea of how much liquid assets you need to help complete the deal.
For first-time home buyers, the home buying process can be a vast and nerve-wracking experience. Having a knowledgeable team by your side to guide you through the steps and ensure you are ready for whatever challenges arise is critical for your success. Milano Realty Group will work with you every step of the way to help you get the best deal on your first dream home! Contact our team today to schedule an appointment!
