First Time Home Buyer Tips

Buying a house is one of the most significant steps anyone has to make in their lives. Buying a house involves a large amount of money and requires you to wholeheartedly love the place so much that you are willing to stay there for the foreseeable future. Buying a house, especially for first-timers, may seem like a daunting task. The process is complicated and due to the large sums of money involved, you have to be extra diligent to avoid getting the short end of the stick. Luckily for you, we have compiled some tips to help you through the treacherous journey of first time home ownership:

• Know Your Credit Status - If you are buying your first home, chances are you will need a home loan. Checking your credit score helps you know how much mortgage you qualify to get which helps you know your price range. Scrutinize your credit report for any mistakes, collection accounts or unpaid accounts. Ideally, you need to have a lot of credit available if it’s your first time buying a home, with not more that a third used. You need to tidy up your credit at least six months before you start shopping for a house.
• Organize your documents - A lot of key documents are required for any home buying transaction, especially when there is a mortgage involved. Homebuyers must provide proof of income and taxes when applying for mortgages. Lenders usually request W-2 forms for previous two years, two recent pay stubs, bank statements and tax returns from previous two months. Ensure you have all the documents you need before shopping for a home.
• Decide on a type of property - When buying a residential property, there a lot of options for you to choose from. You can go for a condo, a bungalow, a townhouse, a traditional single-family home, a multi-family building, among others. Every option has pros and cons depending on your personal preferences and the number of people that will be living there. Choose a home that you find comfortable and one that meets your homeownership goals.
• Find Someone to Help You - Unless you are a professional realtor, you are going to need someone to hold your hand through the complex process of buying your first home. Being your first time, there may be some parts of the process that you may not fully understand which may leave room for someone to exploit you. You need someone in your corner to help you pick the right property and negotiating the best terms possible.
• Always perform a home inspection before buying - Even if you are buying a new home which appears to be flawless, it’s always advisable to have a professional inspect it and give it a mark of quality before you commit. A trained professional home inspector evaluates the quality, safety, and the overall condition of the property. They can help you discover defects before purchase and get your deposit back if the seller had not disclosed that information.
• Have an emergency fund - When you finally own a home, you can expect some minor and major unexpected expenses that may require immediate attention. For instance, if your water heater is permanently damaged, you have to replace it right there and then. Have an emergency fund to cater for such unexpected expenses as they arise.
• Regular maintenance - To maintain your house in tip-top condition, you have to perform regular maintenance on it, both preventive and corrective maintenance. Any part that breaks down should be repaired or replaced promptly with high-quality parts. You should also make improvements where possible to maintain the competitive edge of the house in case you ever have to sell.