Taking part in the American dream by purchasing your first home is something many look forward to and work hard for. While it should be celebrated, make sure you know everything that’s included in buying and owning a home! Here are what first-time home buyers need to know before buying a home this spring.
1. First Time Home Buyers Need A REALTOR®
A good REALTOR® will make all the difference in the home buying process! The right REALTOR® is patient with first-time home buyers because there are a lot of questions about the process. The right REALTOR® understands and supports your home buying goals. Lastly, the right REALTOR® understands the market and has experience working in a seller’s market. Having an excellent REALTOR® on your side that you trust makes the process less stressful and a lot quicker.
2. You Set Financial Goals
Most problems with buying a house can usually be traced back to finances. Before purchasing a home, you want to make sure you set realistic financial goals. Some questions to first time home buyers should ask themselves are:
- How much do I want to put down on a downpayment?
- Do I have money saved up for closing costs?
- Do I have money saved up for emergencies and maintenance after the home is bought?
- How much do I want to borrow from a lender?
- How much do I want to pay for my mortgage each month?
A problem many first-time home buyers come across is a bank or mortgage company pre-approving them for more money than they initially thought. While it can seem great on the surface, this is how you can get into trouble quickly. Home buyers, especially first-time ones, don’t want to be stuck with a mortgage you cannot afford.
This can also tie into another tip: be prepared to walk away. Don’t make yourself miserable and ruin your finances with a home you can’t afford. Instead, be logical and walk away from the house. While saying no to what you can’t afford is hard, it will be a good choice you’ll benefit from in the future.
3. You Want a Home Warranty
The joy and drain of being a homeowner means owning the property. This means there’s no landlord to call when something breaks, which is where a home warranty comes into play. A home warranty can even be negotiated in closing and could be something the seller pays for. A home warranty will help you pay for expensive housing appliances and systems like AC and heating, plumbing, electrical, refrigerator, dishwasher, etc. Instead of spending hundreds to thousands of dollars for repairs or replacements for these systems, you would only pay the service call fee. A home warranty can save you a lot of money long term.
4. Listen To Your Gut
Buying a home shouldn’t be stressful and draining! It should be fun and full of opportunity and hope. But that hope can quickly be diminished once you start telling friends and family that you want to buy a home. Everyone will have an opinion on everything, so it can be hard to decipher what’s right for you versus what everyone else said. While friends and family might mean well, at the end of the day, this is your home and your mortgage you’re paying, so it should be the home you want. Ask for feedback, but trust and listen to your own gut so you can follow what feels right for you, your goals, and your future.
If you’re a first-time home buyer and need help buying a home this spring in Austin, contact us so we can find you a reputable REALTOR® and lender!