Buying your first home is a momentous milestone that makes up a large percentage of the population buying homes each year. Out of everyone purchasing a home last year, 32% of them were first-time home buyers.
Although buying your first home is a rite of passage for many, it is an experience that can make you feel excited, hopeful, and a little bit anxious. The more knowledge you have about the home-buying process, the better you'll feel about making this big purchase. Here are some key home-buying tips to guide you through making a wise investment in your first home.
Have a Budget
One of the keys to smart home buying is staying within your budget. Start by taking a deep look at your current financial situation. Calculate your monthly income, expenses, and savings to get a picture of your financial situation.
Use an online mortgage calculator so you have a rough idea of how much you can borrow and what your monthly mortgage payments look like. Don't forget to add costs like property taxes, home insurance, and maintenance to the final number.
Get Pre-Approved for a Mortgage
Another key step in the home-buying process is to get pre-approved for a mortgage, which will help you know how much you can spend on a home. Getting pre-approved helps you know exactly how much you can spend on your new house. It also helps show home sellers that you are ready and serious about buying a home.
When you get pre-approved, you'll bring financial documents to a lender. Here are some of the documents you'll have to bring:
- Pay Stubs
- Tax Return
- W-2 Form
- Bank and Investment Statements
- Proof of Employment
- Identification
Once you've gathered this information, you'll be ready to fill out a mortgage application. Your lender will look at your financial documents and determine if their bank can lend to you and how much you can borrow for your home loan.
Location, Location, Location
Smart home buying is all about finding the best location to put down your roots. Think about factors like how close the neighborhood is to work, how their schools are, how safe they are, and what amenities the location offers. Take a drive around an area you are interested in at different times to see the residents and community there in action.
Work With a Professional
Pairing with a professional will help make navigating the real-estate market easier, especially for first-time home buyers. Professional realtors can look at listings and market trends to help negotiate the sale of your home when you find one, on your behalf.
Following These Home Buying Tips to Get into Your First House
Buying your first home is a rewarding process that requires careful planning and consideration. By following home-buying tips such as understanding your budget, researching neighborhoods, and working with professionals, you can make a wise investment and find a place that feels like home.
If you're ready to buy your first home, look no further than PMI Commonwealth. As a locally owned, full-service real estate management company with over 20 years of experience, we specialize in helping both residential and commercial property owners achieve their dreams. Contact us today to get the process started!
