First Time Home Buyers: What to Look For

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The decision to buy a house is not one to be made lightly, and it requires a minimum of several months to plan. In addition to putting away enough savings for the down payment and closing costs, you'll have to spend time getting your credit history in order and searching for the right professionals to help you. When you are ready to start looking, the following considerations will help you find the ideal house for you and your family.

Start With Your Lender

You shouldn't look for the first lender that will approve you for a loan. Often, looking for the easiest or fastest rate of approval will lead to unfavorable terms on your mortgage. When you're buying your first home, you should take your time in looking for a lender that will offer you the lowest interest rate. A key thing to remember is that paying a higher down payment can help you pay a lower rate of interest and vice versa. A lower down payment means you'll owe more on your home and your monthly payments will be that much higher. Taking your time to browse lenders can help you get a better deal.

Narrow Down the Neighborhood

You must keep in mind the fact that you'll be living in your new home for decades to come, so you should be able to predict how the neighborhood will evolve over those years. This is a good reason to work with a real estate agent who has experience in reading the local market. If a neighborhood is already looking run down and includes several houses for sale, it's unlikely that it will make a turnaround anytime soon. Rather, it will probably get worse before it gets better. Especially if you're planning on raising children, you'll want to choose a home in a good neighborhood with easy access to parks, grocery stores, and other amenities.

Look at Each Home's Systems

As you begin looking at homes in the neighborhoods of your choosing, the first things you should look at are the mechanical or electronic systems that will run the home. This includes determining the age and condition of each home's HVAC or radiant floor heating systems. You should also look at the electrical wiring and plumbing. While the home inspection will provide a more detailed analysis, you should look to see that these systems are in reasonably good condition at a glance. You don't want to commit to a house that's going to cost you thousands in repairs as soon as you move into the home.

Does the Home Fit Your Family?

Another consideration is whether not the home is the right size and style for your family. If you and your spouse have one child now, consider whether you'll have more children in the next three to five years. If so, you'll need something bigger than a two bedroom home. You'll also need to have a fairly large yard for your kids and pets. When touring each home, you should pay attention to the number and location of electrical outlets and light switches. If there aren't ample outlets throughout the home and in each bedroom, you may run into problems later. You should also make sure the home has outlets for your laundry machines and any other big appliances you plan to bring with you.

Look For Better Deals

As you look for homes, try to find something that fits your needs and has been on the market for several weeks to a few months. The reason for this is that sellers become more flexible when their homes prove especially challenging to sell. They may be more willing to drop their sale price considerably if they don't think they have a choice. Sometimes, it can be worthwhile to pay less on a home even when it's in need of repairs or updates. How much work you want to put into your first home will depend on your situation, but a home that will sell for less can be a good motivation to compromise on other aspects of the home.

Buying a home is an investment that will benefit you for years to come, but it's also a long-term responsibility. As this will be something you'll be stuck with for a minimum of 15 to 30 years, you must be sure you'll be happy with it. Taking the time to look for a property that meets your family's needs will help you make the right decision.