The stars have aligned and finally, instead of just watching those house hunting shows, it’s your turn to begin the search for your first home.
You are in good company. According to the National Association of Realtors, 34% of all home buyers are first-time buyers. In addition, 65% of those first-time, would-be homeowners are under the age of 37.
Buying your first home is one of the biggest purchases you’ll make. It is an emotional experience. But, it’s crucial you don’t let the excitement of homeownership blind you to potential pitfalls.
Here are four important tips to follow during your search.
1. Start with Pre-qualification
Don’t look at houses without knowing how much you can afford. A pre-qualification from DuGood proves your creditworthiness, which means your offer will be taken seriously by sellers. Be realistic when also evaluating your own budget. Calculate all the costs involved: not just the monthly mortgage payments, down payment, and closing costs.
2. Understand the Full Cost of Homeownership
So about that budget we mentioned in the previous paragraph… If you’ve rented before, you’re probably accustomed to paying monthly bills like utilities, internet, or cable. Once you’re a homeowner, however, there’s no more landlord to cover expenses or make repairs. You’ll be responsible for water, sewage, garbage bills, and lawn care – plus possible monthly HOAs. Other big expenses you can expect are homeowner’s insurance, property taxes, and maintenance.
According to Zillow, it’s recommended that you set aside 1-3% of the purchase price of your home annually to cover repairs and maintenance.
3. Don’t Switch Jobs or Make a Big purchase Before Closing
It’s not over until the closing is done. Lenders will look at your credit just before closing to make sure your financial situation hasn’t changed. Before closing, you shouldn’t make any big purchases or career moves.
4. Learn About the Neighborhood
Do your research. Real Estate websites like Zillow and Trulia, and apps like Nextdoor, can give you the scoop about what life is really like in your new neighborhood, from safety to schools.
How DuGood Can Help
Ready to start house hunting? We’d love to go on the journey with you! At DuGood, we believe in being present for every part of the home buying process. Here are a few ways we can help:
- Download our Home Buyers Guide - This free eBook answers your questions and guides you along the home buying process step by step.
- Meet our Mortgage Team – Our friendly lending experts have years of experience and would be happy to answer any questions you might have.
- EZ Mortgage App – Apply for your home loan, sign and upload documents, and receive alerts about the progress of your loan.
