The first time you purchase a home can be a tad overwhelming. There’s so much to consider and the paperwork! It can seem endless, for sure. Whether it’s your first primary residence or your first investment property, the home buying process can be complicated at best. To help you get through it unscathed – or mostly so – we’ve put together a few helpful tips and suggestions to keep in mind. If you’re a first-time homebuyer, you’ll be glad to hear that you may be eligible for some pretty nice incentives, so be prepared to take action when an opportunity presents itself.
Now, without further ado, here are some things that will simplify your first homebuying experience.
What Are Your Goals?
It’s important to identify your goals and work toward them with your new home purchase. For example, will this be your primary residence or will you be using it as a rental property or a fix-n-flip investment? How you plan to use the property will determine your budget and whether you put money into it for sentimental reasons or just to make upgrades to increase the property’s value.
Talk to a Lender Before You Begin Your Search
If you’re planning to use your new home as an investment property, you should find a lender that specializes in that kind of transaction. This lender will understand your goals better and be more apt to assist you with the right type of loan. It might take you longer to find such a lender but taking the time to find the right one will make the home buying process easier.
Know Your Budget
Once you’ve found a lender, you must work together to figure out your budget. Your budget is more than just what you can afford, mind you. You also have to be sure you can collect enough rent to pay your mortgage and then some. For example, if the market rent is $1,000 where the property is located, but your mortgage payment is $1,100 a month, you’ll have a negative cash flow right from the get-go.
Find the Right Agent
Don’t go it alone when looking for your first property. Whether you’re looking for your forever home or your first rental property, you need an agent that understands your needs. This agent will have market knowledge and possess the ability to find just the right property to meet your goals.
Crunch Some Numbers
Once you’ve found a few properties that seem to fit your needs, take the time to crunch the numbers to be sure they meet your needs financially. Doing this will enable you to dwindle the list down even more.
Once you’ve found a property or two that meets your need, make an offer right away. Even if the home doesn’t fit your budget specifically, make an offer that does. The worse thing the seller can do is say no, in which case, you’ll move on to the next home. You might be surprised, however, that the seller accepts your offer, and you end up with the home you’ve always dreamed of.