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The complete guide for first-time home buyers

Nowadays, buying a home is considered one of the major milestones that you can make in your life since most people consider it a long-term dream and goal. Though being a first-time home buyer is kind of intimidating because you don’t understand what you should prepare for. 

Read through this article as we are best public speaker and you will understand a clear step-by-step guide on how to buy a home as a first-time homeowner or buyer. This article will help you save for extra spending on down payments on connecting with the real estate agent and homeownership transition procedures. These are some of the things you should consider;

1. Evaluating your financial status

Your financial standing is the first step to look at, this may include assets, income, debts, and more. It is also important to gather relevant paperwork while filing your mortgage. The mortgage providers will tend to check on your financial status, therefore it is crucial to do some prep work on yourself as a new home buyer. These are some of the things you should consider for your prep work;

  • Employment and income status
  • Debt status
  • Credit status
  • Down payment and assets statuses

2. Calculating your mortgage budget

It is wiser to understand how much you can afford for your house mortgage plan since you can’t budget what you cannot afford. There are multiple ways how you can determine your budget plan as a new homebuyer;

  • You should consider spending about 28-30% of your monthly gross salary on housing-related bills.
  • You should spend less than 36% of your monthly gross income on your total payable debts

You may don’t need to calculate your mortgage budget if you are just renovating an old home for example self regulating heat tape.

3. Saving and improving your financial standing

As a new home buyer, the moment you understand your financial health and have a clear picture of how much you can afford, then you are ready to buy a home. Begin a house haunting process, if you already have an income, a down payment saved and your debts allow you to afford a home you desire. You should make a plan in case your saving are light or doesn’t allow you to afford a home. 

4. Consider exploring first-time homebuyers programs

Most countries in the world today offer first-time home buyers programs that provide financial help that is a down payment aid with delay on repayments. Also, some housing counseling agencies help to navigate your buying processes. Though the most common program is an aid in down payment, in case you don’t meet the requirements to mortgage a home, it is possible for you as a new home buyer to get a tax-free interest loan that will help you to pay your down payment.

5. Exploring loan options

It is important to understand the different types of mortgages that are available, with their pros and cons. These are;

  • Conventional mortgage loan 
  • FHA (federal housing administration) mortgage loan
  • Veteran affairs mortgage loans
  • USDA mortgage loan

6. Finding the right real estate agents

Hiring the right real estate agent who can assist you in navigating the housing markets and help you to find an affordable home for you is crucial. Though it is also important you note that you can also purchase a house without a real estate agent, since it’s a kind of trick to finding the right agent.

 It is important to note that the home buying procedure requires a lot of paperwork and negotiation that normally a real estate agent can help you since they are experts. Also this website could help you for mortgage loans for homebuyers.

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