Key points & tips for first time home buyers.
Nothing compares to the rewarding feeling of owning your own home, however, buying your first home can seem like an intimidating and difficult process. It may also be a step you feel like you’re not financially ready for. It’s important to consider all options and possibilities before making a big decision like buying a home. Today, we’re giving you some key points and tips to consider before you either jump in with both feet, or completely rule out the idea of buying your first home at the present time altogether.
Tip #1 – Hire a Real Estate Agent
Buying your first home should be an exciting time! That’s why it’s important to have some help. A professional, experienced real estate agent can walk you through the home buying process, take care of the hard work for you, give you market updates, handle the negotiations, and use countless resources to help you find the home that works best for you!
Tip #2 – Get Pre-approved for a loan
It’s important to get pre-approved as this tells you how much money you can spend, where you should be looking, and also how to get to where you want to be. This creates a solid foundation for when you start home-shopping. Your agent can connect you with a great loan officer to get things started!
Tip #3 – 20% down payment is a myth!
Many people believe you need to have a 20% down payment in order to purchase your first home. That is a real estate myth. There are many loan programs where you can buy a home with no money down, or for as little as 3.5% The key is working with your loan officer to pick the program that works best for you and your current situation!
Tip #4 – You can rent out a room to cut costs
Many first time buyers are still single and don’t need as much space, and may not have as much funds. That’s why, in some cases, it’s a good idea to consider renting a room to a friend, which can help cover some of the mortgage costs and utility bills, and relieve some of the pressure from your shoulders.
Tip #5 – Purchase a fixer upper to build equity
Consider purchasing a starter home that needs some updating, just don’t be afraid to do the work either! In order to stick to your budget, this may be a necessary move. These homes are more affordable and sensible, and offer the opportunity to increase the equity of the home, which you can later sell and use the profit as a down payment on your second home!
Overall, buying your first home isn’t as scary as it sounds. With a little preparation, patience, and help, you can be a proud home owner sooner, rather than later! Give us a call, we’d be happy to work for YOU and ensure every detail of buying your first home is taken care of from start to finish, and even long after closing.
Ethan Burton – 606.282.3821 Central Kentucky Properties