4 Tips for the First-Time Homebuyer

by Kevin Smith Author

Being a young, first-time homebuyer is a terrifying but worthwhile experience. You may not know what you're doing, but a house is always a good investment. Here are some tips that'll make things easier:

Hire an Agent

A real estate agent is going to be your biggest ally in your home-buying quest. They have the training and experience to sort through the technical details and jargon involved in house hunting, so you don't have to.

Your real estate agent will help you preview homes and get rid of overpriced options. They'll take all you want in a house, such as a big bathroom or a spacious living room, and find one that fits your needs. These people will also have access to listings that you don't.

Find Something in Your Price Range

You and your real estate agent should both know how much you're willing to pay for a new home. And, don't go all out, either. You may afford your dream house, but is it the smart move to make? Can you handle the financial burden it'll place on you?

Once you've figured out a realistic price range, let your agent know. They'll give you all the choices you need. Look through the different options and find the house that you like but won't completely blow your budget.

Save for a Down Payment

Houses are expensive. If you're worried that the full price is more than you can afford, don't be. When buying a new home, all you need is a down payment. Save up at least 20% of what the listing is asking for. That way, you won't have to pay for private mortgage insurance, which will just increase your overall costs.

If 20% still feels like it's too much, there are various programs that can help you, especially if you're a first-time homebuyer. You have so many options at your disposal, so find one that'll suit your needs best.

Get Pre-Approved for a Loan

Once you have the funds for a down payment, it's time to figure out how to obtain the money for the remaining 80%. Usually, this will involve taking out a mortgage. But, before you talk to a lender, it's a good idea to get pre-approved first.

It may take longer, and you'll have to spend a little more money, but it's more than worth it. Getting pre-approved shows lenders that you're serious. It's also a sign you have the means to pay off your loans.

The journey to buying your first house is as fun as it is challenging. You have a lot to do, from hiring a Lakewood Ranch realtor to getting pre-approved for a loan. Hopefully, these tips have eased some of your burdens. And, if you're still having trouble, don't hesitate to ask help from your agent or the people close to you.