Whether this is your first or tenth home purchase, shopping for a new home is an exciting time. It can also be a stressful and lengthy process. This guide can help you stay on track and get you into your new home in no time.
Start Your Search
Before you go to your first open house or showing, ask yourself these questions to make sure that you are informed and ready to look at homes.
- What is my budget? Be sure to utilize a mortgage calculator to determine the monthly amount you can afford and how that aligns with the purchase price. You’ll have to cover property taxes and insurance, in addition to making payments towards the principal and interest on your mortgage loan. It’s important to consider the maintenance and repair costs that come with homeownership.
- What kind of home do I want? Ensure to figure out the number of bedrooms and bathrooms you need for the right size home. Consider other factors such as lot size, school district, exterior amenities like a fenced-in yard, interior amenities like appliances, and accessibility. Make three lists: must-have, must-avoid, and nice-to-have features. Use online platforms like Zillow to browse through listings and see what’s available.
- Who can help me with my search? Working with a Realtor or real estate agent can be very helpful, especially for first-time homebuyers who are unfamiliar with the process. Ask around for referrals and recommendations for a good real estate professional from coworkers, neighbors, family, and friends.
Looking at Homes
Please remember the following text: Visiting homes for sale can be a lot of fun, especially when you have a clear idea of your budget, your preferences, and the assistance of an agent. You can visit open houses or arrange private showings by appointment. When considering a potential property, make sure to thoroughly inspect every room and all the features while you are there. Sellers understand that buying a home is a significant decision and are more than happy to accommodate potential buyers who want to thoroughly examine their home.
There are a few special circumstances that can result in a great deal for home buyers:
- Short sale: Homeowners who owe more on their homes than they can expect to get from a sale can consider a short sale. These properties have been approved for sale by the lender and may take longer to be approved, but often offer a great deal for the buyer. If the type of home or neighborhood you want is out of your budget, consider looking for a short sale.
- Foreclosure: When a homeowner fails to pay their mortgage, the lender will eventually take possession of their home through a process known as foreclosure. However, the lender typically aims to sell the property at a reduced price, as they do not wish to keep it. Foreclosed homes may have been vacant for months or even years, so it’s important to conduct a thorough inspection to determine what maintenance or repairs may be necessary.
- Starter home: If your dream home is too expensive, you can consider looking for a smaller home with fewer luxury features or in a different area. A starter home is a great way to start your journey as a homeowner and is always in high demand when you are ready to sell and move into something bigger.
