3 Basic Tips for Becoming a First-Time Homeowner
Dreaming of becoming a first-time homeowner? Well, then you may also be worried about whether buying your first home will be a nightmare. Thankfully, this process doesn’t have to be as complicated as it may seem, especially when you keep these home buying tips in mind.
Consider Building Your New Home
If you have specific ideas for what you want your new home to look like, then you may want to consider building a custom home. Depending on the features and location, the costs to build a custom home can run anywhere from $350,000 to $1.5 million, although more basic homes will be between $165,961 and $474,252. Your price will also depend on whether your home will include a single level or multiple levels, will be large or small, or will adhere to traditional shapes or take on a custom flow. Try to keep in mind that these costs are only related to the actual construction of your home, as you will still need to purchase land before you start building. While this may seem like a less complicated task than buying a new home, finding the right plot of land for your custom-built home is critical. You don’t want to build a massive home in a neighborhood of modestly sized houses, and you also do not want to construct your home in an area that lacks access to utilities. So, your best bet is to work with a pro who has experience.
Think About Your Financial Options
Whether you plan on buying or building a new home, completing certain financial steps needs to be a top priority. You may have already checked most of these tasks off your list, but reviewing your credit report, remedying any mistakes, and researching home loan options are smart moves toward getting the best deal on your new home loan. Depending on your timeline, you may also want to think about saving a down payment, so that you will have more buying power and access to a wider variety of lenders. Most down payments range from 3 to 20 percent of the total home value, and if you can make the financial sacrifices needed to put this money aside you will also have a better shot at keeping up with your housing payments. This is especially important for first-time homebuyers who may not be accustomed to paying for a mortgage other costs of homeownership. Speaking of the costs of homeownership, it’s also essential for first-time buyers to consider all potential expenses involved with owning a home.
Research Your Local Real Estate Market
Before you begin applying for home loans, you also need to have a good idea of what current home prices and real estate trends are in your area. Researching real estate is so simple these days thanks to the internet, but you also need to take a look at the local community. Some key things to look for when researching local markets include the development of new infrastructure, the rate of housing price growth, and average property taxes for neighboring cities. Taking these factors into consideration can help ensure that you get the most house for your money and that you will be able to sell your home in the future, if needed. Of course, other factors you may want to consider when searching for your new home include local crime rates, school ratings, and nearby amenities. Good schools typically top the list for homebuyers, so even if you do not have kids, you may want to research schools in your desired location. Finally, if you want to avoid doing all of this homework on your own, work with a reliable local buyer’s agent.
Buying a new home can feel like an overwhelmingly complicated process, but it doesn’t have to be. When you take the time to decide whether to buy or build, carefully review your finances, and research the local real estate market, you can rest assured that you will make the best decisions when it comes to buying a home.