Shoeaholic No More



December 2015



5 Tips for Buying Your First Home

Written by , Posted in Money & Finances

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shutters-669296_640It’s an exciting moment, when you reach that stage of life where you’re finally stable enough to become a homeowner. It can be thrilling to search through the listings, picturing yourself in various neighborhoods and homes. And as your eyes wander from picture to picture, you begin to envision all the ways you’ll decorate or the plan you have for that spare room. However, it can also be a bit daunting when you’re a first timer and unsure of the process. Consider a few of these tips, and you’ll be moving into that lovely new space in no time.

  1. Know Your Budget

That beautiful, all-brick, five-bedroom, and three-bathroom house for sale in Melbourne with the chef’s kitchen sounds amazing, but it’ll most likely put you in financial ruin. At least a few months before you begin looking, you should organize and take a look at your budget. Figure out what you spend each month on everything from groceries to entertainment to gas. After you figure out how much you spend on bills and other expenses, see how much you have left, that is what you have to spend on your mortgage each month. This way you’ll know exactly what you can afford before you get carried away looking at homes above your price range.

  1. Get Approval First

Get pre-approved for a loan before you start looking. By doing this beforehand, you’ll know just how much a bank is willing to lend you. This will help you when you’re figuring out your price range, and allow you to narrow your search. Furthermore, it will help when you’re finally ready to make an offer, as sellers will seriously consider you as buyer.

  1. Seriously Consider an Agent

Although this will add to your expenses, having a real estate agent can only help you, especially when you’re looking for the first time. They know the ins and outs of the home buying industry and often know things even experience homeowners don’t. They can save you time by showing you listings only within your parameters, and more often than not, know about available real estate before it’s actually listed. They’ll also be able to assist you when it comes to price. Agents know when something is overpriced, and their expertise will be a major benefit when you begin the negotiation process.

  1. Get an Inspection

Before you even consider handing over your money, be sure to have your potential home inspected. Although you’ve been in the house that doesn’t necessarily mean you were able to see any or all of its flaws and possible problems. In most scenarios, if an inspector does find a problem, the seller will mitigate the issue or negotiate it into the price. If no problems arise, the inspection will assure you in your purchase.

  1. Know What You’re Signing

Probably the most obvious, but sometimes not the most followed tip, is to read over everything and gain clarification before signing any documents. I know it’s an exciting step, because it means the home is pretty much yours, but don’t be so quick to blindly sign any paper put in front of you. Save yourself from trouble down the road, pay attention to numbers and make sure you understand everything you’re reading. If something sounds confusing be sure to ask your real estate agent or another trusted party to give you some insight, you’ll be glad you did.

Buying your first home is an exciting step in life, but don’t let the excitement get you in over your head or lead you to mistakes. Do your research and make sure you understand the process, and what you’re getting into every step of the way. In the end, it will make your home buying experience a pleasant one, and lead you to your cozy, new abode.

Photo courtesy of: psaudio

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Taylor Madsen

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