Buying A House For The First Time? Here Are Things You Should Know

Buying a house for the first time is an exciting experience. Despite economic situations, the number of homeowners continues to grow. A study by Statista reports that first-time home buyers made up 34% of buyers in the United States in 2021.

If you are acquiring a house for the first time, you are in good company. And as fulfilling as this experience will be, it isn’t without its challenges. You may be worried about the steps, process and requirements for a first-time home buyer. Of course, you want to avoid making any mistakes that might ruin your experience. This is why you need to be armed with the right information to save yourself from any problems.?

Who is a First-Time Home Buyer?

A first time home buyer has never owned a house before. A person who hasn’t owned a house in the last three years is also regarded as a first time homeowner. According to the Federal Housing Authority, if one spouse has never owned a home, both spouses are also classified as first time owners. purchasing a principal residence for the first time. To make your buying process easy, here are some things to help you.

1.Start Saving Early

If you are buying a house for the first time, you will need to save up for a down payment. Your finance is the major determinant of your buying. There are other payments to consider beyond the down payment. There are the closing costs, subsequent living expenses and generally spending for the process. You may need to cut down on spending so you can start to save for a down payment. Having a down payment of 20% will make securing a mortgage easier.

2. Check and Strengthen Your Credit Score

A good credit score will help you qualify for a loan. Lenders want to see that you have a long history of paying debts on time before they’ll consider you eligible. If you plan to buy a house soon, work towards a good credit score. Anything from 600 and above is a good place to start. Other things lenders will consider when you are buying a house for the first time, is how long you have been at your current job, your monthly income and your assets.??

3. Find First Time Home Buyers Mortgages and Assistance

A mortgage will accelerate the process of purchasing your first home. For a first time buyer, there are a lot of ?home grants and loans open to you depending on the state you live in. There are fixed-rate mortgages, which may not be easy to qualify for. There is also the US Department of Veterans Affairs loan. This department doesn’t give loans but it guarantees that qualified lenders get loans. You can also consider the Federal Housing Administration loans. They are easy to qualify for and they have less down payments. Taking the time to find all financing programs will help you save money and also find a suitable loan.?

4. Decide Which Type of House You Want

There are a variety of home types you can choose from. It all boils down to preference and what will serve you in the long term. You could choose to stick with a single-family home, a condominium, a duplex or a townhouse. You could also consider a multifamily building. All of these options have cons and pros, so you might want to consider each before choosing. Also, you have to look at the location and size of the property you want to buy. How close it is to social amenities, the quality of the neighborhood and if it essentially serves you.?

5. Get Pre-approved for a Loan

You have some money saved as a down payment, you have a great credit score and you know the type of mortgages you are eligible for as a first time home buyer. Now you have to get pre-approved for a loan. Getting pre-approved might be a more taxing process. You find a lender who agrees to lend you money after you might have met all of the requirements.?

Before a lender can give you a loan, you will need to state your name, age, income, address, assets, credit score, employment status and some other bits of information depending on the lender. And a pre-approval lasts for 90 days usually. Most Sellers or real estate agents will only agree to work with you once they know you have been pre-approved.?

6. Find a Real Estate Agent

As a first time home buyer, a credible real estate agent can be an invaluable tool for your house search. They bring experience, negotiation skills and knowledge of all the intricacies of home buying. Getting a real estate agent can also make your process faster. If you have friends who have made previous purchases, you can ask them for contact with real estate agents or a simple google search narrowed to your chosen area will produce possible contacts.

7. Here Beings Your Home Search

This stage can be both fun and stressful. Beyond what you see perusing the internet, the visitation of homes is a whole experience. Though nothing is written in stone, fixing your mind on your budget and a type of house will narrow down your search. Thus preventing you from wasting time on places that don't serve you. State what the things your dream house should have and what isn’t essential to you. Don’t forget to revel in the pleasure of being a first-time buyer and finding your dream house.?

8. Conduct a House Inspection

A professional house inspection is your sure bet. A professional house inspector will most likely have more experienced eyes than you and so can spot problems faster. A thorough examination through the house will reveal if there are major problems. Most house repairs are expensive and can put a hole in your finances. A house inspector will check for faulty foundations, roof damages, plumbing issues, exterior inspection, grading and other problems. If the house has major repairs, you can walk away.?

Conclusion

The right information is the best tool for first-time home buyers. The more you know, the easier for you it will be to make a purchase. Take your time to find out as much as you can about everything you need. This will prevent you from settling for what doesn't serve you.?