Every year, about one-third of the homes sold all across the country are sold to first-time homebuyers. This year, in particular, there are a lot of millennials looking to purchase their first homes.
If you’re one of them, you’re likely excited about the prospect of purchasing a home for the first time. But becoming a first-time homeowner can also be an unnerving experience for many people.
Before you sign on the dotted line and agree to buy your first home, you should make sure that you go about doing it in the right way. Here is a guide that will help you when it comes to buying a home.
- 1 Start by Saving Enough Money to Buy Your First Home
- 2 Get Preapproved for a Mortgage Prior to Shopping Around for Your First Home
- 3 Look at Homes That Will Fit Into Your Price Range
- 4 Consider All the Costs That Will Come Along With Buying Different Homes
- 5 Avoid Falling in Love With the First Great Home You Find
- 6 Act Fast If You Find a Home That Is Perfect for You
- 7 Now Is a Great Time for Millennials to Buy Their First Homes
Start by Saving Enough Money to Buy Your First Home
In order to buy your first home, you’re obviously going to need to have enough money saved up to do it. This is the first thing that you’ll need to do before buying a home for the first time.
For years, the thought was that people had to save up 20% of the cost of a home to use as a downpayment. This isn’t necessarily true anymore since there are all kinds of mortgages that people can qualify for without putting a full 20% down on a home.
But if you don’t put down 20% on a home, you might be subjected to mortgage insurance, which could cost you a pretty penny over time. With this in mind, it’s a good idea to save up as much money as you possibly can prior to purchasing your first house.
Get Preapproved for a Mortgage Prior to Shopping Around for Your First Home
How much are you going to be able to afford to pay for your first home? This is something you’ll want to think about before you start shopping for houses.
And you shouldn’t just come up with an arbitrary number based on what you think you’re going to be able to afford. You should instead try to get preapproved for a mortgage so that you have a good idea of what you’re going to get approved for when you go to take out an actual mortgage.
The last thing you want to do is fall in love with a home only to find out that it costs way more than a mortgage company will give you to buy a house. Getting preapproved will put you in the perfect position to shop for homes that will work well with your budget.
Look at Homes That Will Fit Into Your Price Range
Once you’ve been preapproved for a mortgage, you can start the process of shopping for your first home. You’ll want to look around at the best affordable homes in your area.
You can go through this process by yourself if you want. But more often than not, you’re going to want to bring a real estate agent on board to help you.
A real estate agent can assist you as you navigate your way through the home-buying process for the first time. Most millennials choose to work with an experienced realtor when buying their first houses.
Consider All the Costs That Will Come Along With Buying Different Homes
When you’re walking through a house for the first time and trying to decide whether or not you like it, you should consider more than just the way the house looks and the features that it has. You should also think about any and all costs that will come along with buying it.
For example, does a house have a huge backyard? You might love its appearance and automatically think about all the parties you’ll be able to throw outside. But you should also factor in the landscaping costs that you’ll have to pay.
You don’t want to get stuck living in a home that costs way more to maintain than you realized. It’s why you should keep these kinds of things in the back of your mind when considering a home.
Avoid Falling in Love With the First Great Home You Find
Many first-time homebuyers will walk through the very first house that they go to see and say, “This is it! This is the house that we want!”
There is, of course, a chance that a house like this could be the one for you. But you could also just be getting caught up in the moment.
Take a step back when you’re considering buying your first house and make sure it’s going to be the right house for you, both now and in the future. You don’t want to fall in love with the first home you see without considering your other options.
Act Fast If You Find a Home That Is Perfect for You
While it’s important for first-time homebuyers to be patient when shopping for houses and avoid jumping headfirst into buying a home before figuring out if it’s really right for them, you also don’t want to drag your feet too much in the current market. Houses are selling fast right now, and if you hesitate to pull the trigger on a house, you could end up missing out on it.
If you really love a house and think it’s perfect for you, talk to your real estate agent about putting in an offer on it. It’ll ensure you don’t miss out on getting the opportunity to buy it.
Now Is a Great Time for Millennials to Buy Their First Homes
Most millennials are starting to inch closer to their 30s and even their 40s right now. They’re at the perfect age to put down roots by buying their first homes.
If you haven’t taken the plunge into homeownership yet, now would be the right time for you to think about doing it. Use everything that you’ve learned in this guide to start shopping for your first home.
Would you like to get access to more first-time homebuyer tips and tricks before looking around at homes? Read through the rest of the articles on our blog to find some.