Basic Tips for First-Time Homebuyers

Basic Tips for First-Time Homebuyers

The prospect of buying a new home for the first time can be quite an exciting one. However, the process can become complex and overwhelming when you have actually delved in it as a first-time homebuyer. There are so many decisions to take and a whole lot of boxes to check before you can finally realize your dream. If you happen to be one tempted by the idea of buying a home at some point in your life, here are some basic tips for first time homebuyers to get you started.

Educate yourself

It is extremely important for you to have at least basic knowledge of the process of home buying before you venture into the realm of real estate. Familiarize yourself with the different stages involved in the buying process including locating a realtor, online search, visiting open houses, getting pre-approved for mortgage etc. Once you have sufficient knowledge of such important aspects, you are able to make much more informed decisions.

Let the savings begin

It goes without saying that the purchase of a new home will be a significant financial investment. If you mean to realize your dream of buying a big and beautiful house, you must be ready to spend the big bucks when it’s time. For this reason, you should start saving now in order to be able to afford the costs later. Regardless of the size of the savings, these funds will come in handy in the long run when it is time to pay for different costs such as appraisal fees, inspection fees, realtor fees, and the like.

Eyes on the credit score

Always remember that a good credit score will significantly increase your chances of securing a home loan. It is not always possible to pay the full purchase price upfront and you may end up approaching mortgage lenders to finance your dream home. Being an independent party, mortgage lenders would only approve the home loan if you happen to have a good credit profile. You can maintain a good profile by enhancing your credit card status and paying for outstanding credit card payments on time.

Budget for your new home

Needless to say, you can only have a shot at buying a new home once you have a substantial amount of funds available to you. There is no telling how much you would have to spend unless you budget for the expenses involved in purchase. Start with adding all your sources of funds to know your current financial standing. Then, account for various expenses including purchase price such as realtor’s fees, inspection fees, mortgage payments, insurance, repairs and maintenance etc.

Here’s hoping that these basic tips for first time homebuyers will give you a head start on actualizing your dream. If you intend to buy a new home or sell your house in Massachusetts cities like Boston or Newton or on the South Shore, I would love to help. Feel free to call me or send me an email or get in touch on Facebook.

For more great tips and local information about Boston and the South Shore, sign up for my monthly newsletter. I promise I won't spam you.