Buying a home is exciting, and certainly a milestone in anybody’s life. However, purchasing a home doesn’t come without some additional challenges and considerations that you should be wary of. In order to help keep the process as simple as possible, we wanted to offer a few quick tips for buying a home.
Before you start looking at homes to buy, make sure you have a clear understanding of your budget. You will be amazed at how quickly you may fall in love with a house, so you want to be sure you have the funds before you get emotionally invested. Take a moment to evaluate your monthly budget and consider all of your income sources. A good rule of thumb is to make sure that your housing costs (including HOA fees, taxes, and insurance) are no more than 25% of your take-home pay.
You should work with a realtor to has the experience that you need to navigate the real estate market. You’ll want to choose someone that you communicate well with and has a clear understanding of what you’re looking for. The realtor you choose can go a long way in making the entire process much easier, which will ultimately save you a considerable amount of time and money.
It’s a good idea to have at least 20% of the home value as your down payment. Not only will this help you get funding, but it’ll also mean that you avoid paying the PMI, which is about 1% of the home value. It may not sound like much, but it can easily have a few hundred dollars to your mortgage payment.
If you’ve never purchased a home before, you may be surprised to learn that you have to pay closing costs. Typically, this is about 3-4% of the value of the home.
Taking the time to a preapproval letter from a lender will go a long way in showcasing just how serious you are about buying a house. This means that sellers will be more likely to entertain your offers if they know that you’ve already got preapproval from a lender.
Purchasing a house is a big deal. Make sure that you take the time to research the market thoroughly before signing on the house. You want to know the neighborhood, the schools, and what type of growth you should expect in the near future. It’s always a good idea to ensure that the area is a good fit before buying into it.
A really great learning experience is to attend open houses. This allows you to explore the home and really get a fill for the area. Even if you don’t love a particular house, you may still want to attend just to get acquainted with a specific market.
Making an offer is the next step when it comes to purchasing your home. Don’t forget your budget and know that it’s okay to walk away if you simply can’t come to terms with the seller. Don’t get so emotionally involved that you think you have to purchase a particular house. Remember, the market is always changing, and you never know what may be posted in the coming days.
Thinking about purchasing your first home? Let’s chat. For more information and additional support, please contact the offices of Pacific Real Estate Group. We are here to answer your questions and help guide you through the process. Call our offices today to speak to our knowledgeable staff.