Buying your first home is an exciting milestone. You will finally get to share in the American Dream, and have a piece of property to call your own. However, before you get the keys to that house you have been dreaming about, you will need to embark on a journey that requires stamina, patience and understanding.
Are you a first-time home buyer? Here’s 5 things you need to know before you begin your home search:
1. You need to have your financing in order before you begin seeing homes.
One common mistake that first-time home buyers make is that they often want to begin looking at homes before they have a pre-approval from their lender. The reality of the matter is, you need to be pre-approved in order to understand how much you can afford and to narrow down your home search. In addition, you will not be able to submit a serious offer if you do not have a pre-approval letter as proof of your ability to finance the home. Your real estate agent can often recommend a lender, and once you have completed the pre-approval process, the lender will draft a pre-approval letter that can be submitted with any offers you make.
2. You need to make a list of must-have features and want-to-have features.
Your real estate agent needs to understand what you absolutely need to have in your new home. For example, you may need a three-bedroom home with an attached garage. By outlining these necessities, your agent can better customize your MLS search results. Of course, there are likely other features that you want, but may not need. Keep those in mind when looking at homes, but remember to be flexible. You likely aren’t going to purchase your dream home first.
3. You need to understand the importance of location.
Your first home is not going to be your last home, so it’s important that you consider the location of the property before you purchase. You may be purchasing your first home as a single adult, but the family who buys it next may care about the school district that the home is assigned to. Lot location, neighborhood, proximity to community amenities and the local school district must be considered prior to purchasing.
4. You need to work with an agent who will advocate for you.
One advantage that you have as a first-time home buyer is that your offer is not contingent on selling a current property. In addition, you do not have to pay the commission — the seller pays commission fees for both the seller’s and buyer’s agent. Make sure you hire an agent who is going to advocate for you throughout the negotiation process, and who will have your best interests in mind.
5. You need to consider resale value when purchasing a property.
Your first home is more than just a personal purchase — it’s a real estate investment. First-time buyers may feel like they can live with an unattractive feature temporarily, but they may forget that it could make it more difficult for them to sell their home in the future. Resale value is often not a high priority at the time of the purchase, but it should be discussed with your real estate agent.
You will always remember the first home that you purchased. It’s a special place where you will make memories that you cherish for the years to come. Make sure that your journey to finding that home is equally special. Contact a qualified real estate agent today in order to start searching for your first house.