Set Your Budget
The first action you need to take before you begin looking for a home is to set your budget. Are you looking for an expansive four bedroom home or do you prefer to downsize? The size and location of your home can help you determine your budget and allow you to determine if you need to make any adjustments. Reviewing the current interest rates, the type of mortgage loan, and the size of your down payment can give you a general idea of the costs of a home.
Review Mortgage Lenders
It is always a good idea to review multiple mortgage lenders to find the best deal available. Different mortgage companies offer a wide variety of rates, and some companies provide much better financing than others. Determining the amount of mortgage than you can afford and gaining pre-approval is an excellent way to show sellers that you are serious about purchasing a home.
Save & Prepare for a Down Payment
If you wish to attain the best rates, you will need to at least make a 20% down payment on your home. The current median home value is slightly over $300,000, which results in a down payment that is over $60,000. However, you can also pay less to fit within your budget, as not everyone can afford a 20% down payment.
Find a Real Estate Agent
A real estate agent can answer any questions during the home searching process and help you find a home that perfectly fits your needs. Asking for referrals from friends and family can help you find a highly qualified agent in your area. A real estate agent will help you locate homes within your budget and provide essential guidance throughout the home buying process.
Buying your first home is a daunting task for many people but using this real estate checklist can help simplify the entire process. First-time home buyers that follow these guidelines can avoid common mistakes and find their perfect dream home with the help of a highly qualified real estate agent!