What's in a Home? A First-Time Buyer's Guide
If you are looking to make your first home purchase, the number of decisions you will have to make can be overwhelming. It is important to have a full understanding of the entire process to avoid some common disastrous pitfalls. This guide will help you have a successful and enjoyable home-buying experience.
Important questions to ask before starting the process
Buying a home is typically the biggest financial commitment that most people will make. Many first-time home buyers enter the process ill-prepared and end up disappointed when their dreams of owning a home are derailed. You should ask yourself these questions before purchasing your first home:
Do you have a stable career?
If single, are you considering marriage?
Do you have or plan on having children?
Do you desire to live near your job?
Do you have a preferred neighborhood?
The answers to these questions will determine the neighborhood you want to live in and the size of home you need. All too often, first-time buyers will settle for a home that is too small and in an undesirable neighborhood just to own a home. It is best to stay patient so that you can purchase the home that you desire.
Credit
Before you do anything, your credit needs to be in good standing. If your credit score is too low, most lenders will not offer you a mortgage. The minimum credit score is typically around 620, but the higher, the better. A high credit score is also important if you are considering home improvements such as adding a pool from a company like Arizona Pools and Design.
Reduce debt
A mortgage calculator is an excellent tool that can help you determine a mortgage that fits your income. It is important to keep your loan-to-value ratio below 45% to avoid your mortgage application being declined. If you have other debts such as personal loans, credit cards, or auto loans, they should be paid off or paid down to a minimal level because they will increase your value ratio.
Determine your minimum standards
Once all of your preparation is in order, it's time to start your search. Many new first-time home buyers are focused on finding a great-looking home without taking a closer look at the critical structure of the home. The major items that should be examined are the windows, roof, electrical, plumbing, central air system, furnace, bathrooms, and kitchen. It is important to remember that cosmetic items like flooring, light fixtures, decks, paint, and fences can be repaired or replaced inexpensively by a contractor.
Buying your first home will be an enjoyable adventure if you are properly prepared. This includes improving your credit, paying off debts, and asking yourself critical questions before starting your search. For additional information on first-time home buying, follow the TheHomeMag on Facebook or Instagram.
