Without question, real estate is one of the best investments one can make. You can acquire a real estate property as a home for yourself or your family. Alternatively, you may invest in real estate to create an income stream. Whatever your intentions are, you must understand how the real estate market operates.
Navigating the real estate market as a first-time home buyer can be challenging. First-time buyers may, understandably, be concerned about making costly mistakes in their investments. But keep in mind that knowledge is power. You must be willing to do some research to acquire that knowledge. As a result, the more you learn about real estate, the better. It shouldn’t be a challenging task since sites like chatburnliving.com are available to provide you with some insights into the real estate world. They can assist people who wish to buy or sell a home in just a few clicks.
That said, this article will highlight some things first-time home buyers must know about the real estate market.
- Choose Property Type
There are several options for what type of home you could buy. You may buy a duplex, townhouse, traditional single-family home, condo, or even a multifamily building.
It would help if you were specific when searching for the property type you want online. For example, if you’re looking for a property with ocean views in the state of Florida, the towers of Key Biscayne may be a great option.
Nevertheless, you should note that each property type has its advantages and disadvantages. So, you need to choose one type of property based on your goals. Give yourself time to clarify your home needs. Even if you can’t afford your perfect home, strive to find one that checks most of your boxes.
- Assess Your Financial Health
It would be best to thoroughly analyze your financial health before you start ideating your ideal home purchase. Your financial health will determine whether you can afford the house and obtain a good loan. Here are some aspects of finance you should consider:
- Credit Score – Credit scores give the lender an idea of your creditworthiness. They need this to assess your ability to pay their money back. So, the higher the credit score you have, the better. Also, if you have good credit, you may be able to get loans at favorable interest rates. Therefore, you must start making plans to boost your credit score immediately.
- Savings – This is something lenders will consider while reviewing your application. Suppose you don’t have an emergency savings account that covers at least six months of spending. In that case, you probably aren’t ready to purchase a property. Understand that buying a house often comes with many upfront costs. It may include closing fees and downpayment costs. So, trying to build up your funds for at least a year or two before deciding to purchase a home could be worthwhile.
- Spending – You need to have a clear picture of what your average spending is. Some typical expenses may include food, utilities, car maintenance, children’s school fees, student debt, and children’s clothing, amongst other things. Knowing your expenditures will help you decide how much of your income can be attributed to mortgage payments. After you’ve factored in your expenses, you must remain with an amount that covers the monthly mortgage.
The primary reason why financial health matters is that lending institutions don’t want to lend to risky individuals. So, if you have a healthy financial record, you make yourself a great candidate for getting a loan.
- Consider Desired Features
Since you’re making the most significant financial purchase, consider the features you want your house to have. Even though you probably may not get everything you want, you must understand that you deserve a house that meets most of your needs.
So, consider compiling a list of your desired size, location, and design features like bathroom and kitchen layouts. You don’t have to limit yourself. Sometimes, you may need to pay more to get extra features. But this now depends on how important those features are to you.
Aside from indoor amenities and features, it’s also important to consider the outdoor area. Do you need more space for your vehicles and outdoor sports equipment? You might want a more spacious garden for your children’s playground or to grow blossoms and vegetables. Or maybe you need just enough space for a vertical garden.
- Consider Mortgage
It’s always a good idea to get an estimation of how much mortgage you qualify for before applying for a loan. Refrain from working with assumptions because if you think you are eligible for a US$500,000 loan, yet you only qualify for US$250,000, there could be a real problem. Therefore, getting prequalified before even going house shopping is always good.
Thankfully, most lenders and financial institutions have easy-to-use tools that help you calculate the mortgage amount you qualify for. It’s wise to go to several lenders and compare mortgage rates beforehand. That way, you can know which lender to go with.
You can seek the expert help of an experienced realtor from Hills Direct Real Estate or one in the place you plan to buy a property to determine the current market prices. Local-based real estate agents can show prospective buyers the actual listing and emerging prices to know the amount of down payment and the best mortgage option they need.
- Get A Real Estate Agent
You need to find a reputable real estate agent to guide you throughout the home-buying process. You could do some of your research before making any decision. But when it comes to the actual home-buying process, you need to have an agent by your side. It would also help if you sought a local agent familiar with the neighborhood. They are in the best position to help you find a house that best matches your requirements. Once you’ve decided what to buy, they’ll help you negotiate and close the sale.
Before you get a real estate agent, doing your homework is paramount. It’s best to choose a real estate agent with an ABR designation. ABR stands for Accredited Buyer’s Representative, awarded by REBAC or the Real Estate Buyer’s Agent Council. Check other credentials, such as licenses, organization memberships, and other real estate certifications.
You can start your real estate agent search online. Check the local real estate companies in the area you’re interested in buying a property and review their company profile, customer testimonials, and other relevant information. In that way, you can create a shortlist of prospects and conduct an interview to choose the best real estate professional to help you navigate the area’s real estate market.
Conclusion
As a first-time buyer, you must make a timely decision to buy a home. Give yourself time to specify what you want in a home and know your budget. Then, you need to delve into some research to determine the costs involved in property ownership and go house hunting. It’s also best to partner with a reliable real estate agent. They will provide the direction and support you need to find and buy your ideal home.
