After 10 years of marriage, I’m still enjoying living in the first home I moved into with my husband. Buying a first home can be one of the most exciting events in a person’s life. Before making this important expenditure, people need to first sit down and determine how they will successfully finance it. After all, a home will likely be the most expensive purchase you make in your life. Talk to a loan officer and determine how much money you can reasonably borrow. Then, decide how much money you want to use as a down payment. You also must decide how many years you will finance your home for. On this blog, you will learn about the process of buying a first home with a loan.
Are you thinking about buying your first home? For many people, this aspect of the American dream is one of the most exciting — and nerve-wracking — milestones in their life. And that enthusiasm and inexperience can lead many to bite off more than they can chew.
So, how can you find the right starter home for you? Here are four tips to keep it perfectly simple.
1. Don't Think Too Far Ahead. When buying a house, many people think about the future in that home. But unless you plan to be in this first house for the rest of your life, a starter home isn't about fulfilling all your potential future family needs. Focus on your needs right now and for the next five to ten years. This probably means you don't need a lot of bedrooms and bathrooms for all those kids you eventually want to have. If you're early in your career, you may want to focus instead on ease of transportation, walkable neighborhoods, and ease of maintenance.
2. Use a First-Time Homebuyer Specialist. Navigating the world of mortgage options, lending requirements, real estate terms, and inspections can be complicated — even when you have some experience. If this is your first time dealing with it all, use a mortgage lender who specializes in your type of real estate purchase. They can help you avoid overreaching on your budget and find the right loan options for your situation.
3. Don't Overspend. Once you start shopping for a house, the number of choices and the growing size of the average American home will make it harder and harder to stick to a budget. But be firm about knowing what you can spend — both in overall costs and in monthly bills. Remember that, along with the mortgage payment, you'll probably have higher utilities, maintenance expenses, repairs, taxes, and insurance needs.
4. Buy With an Eye to Selling. People buying a house are focused on their own wants and needs rather than the act of reselling the home. But a starter home is designed to be something you eventually grow out of, so pay attention to what you'll need to resell it. Is the location up-and-coming? Are homes in the area appreciating and being sold at a reasonable rate? Can you afford to make a few modernizations or upgrades over the next few years? All these aspects will help a home appreciate better and make you some money for your next home.
By understanding the real purpose of a starter home and buying with the right mortgage for your circumstances, you'll find a home to enjoy — and one that will serve as a launch pad for your future. Contact a company like Cornerstone Residential Mortgage to learn more.