4 Things to Know as First-Time Homebuyers
There are many steps to the home buying process. If you are first-time homebuyers the whole thing can be confusing and difficult to navigate. You will want to make sure that you are not missing anything that you should or shouldn’t be doing.
The following four steps will help first-time homebuyers work through the process as easily as possible.
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Determine Your Budget
When you are ready to buy a house the first thing that you need to do is establish a budget. Refrain from looking at houses on the market until you know how much house you can actually afford.
There are a couple ways to get started in this process. The simplest method is the 28% rule. Your mortgage payment should not equal more than 28% of your gross monthly income. While this is a standard rule to try to follow, it does not tell you how much you will actually be approved for.
When you are serious about purchasing a home it is time to meet with a mortgage lender to be pre-approved. During this process the lender will require you to complete an application and provide proof of your income. This will allow them to make a decision on how much they can approve you for based off of your financial situation.
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Don’t Look for the Perfect Home
If you are trying to find the perfect home you will be disappointed. The sooner first-time homebuyers understand that there is no home that will meet every single thing that is on your wish list, the better off you will be.
As you look at houses it is important that you continue to adjust your priorities so you are able to choose the best possible house that is available. Do not chance losing a great house because you are trying to find the “perfect” house.
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Complete Your Due Diligence
Once you know have found a house that you want to buy it is important that you complete the due diligence. Do not skip this step because you are worried about losing the house. It is better to risk losing a good house then to rush into buying a house that ends up being a nightmare.
Have a home inspector check the house to look for potential problems and make sure the house has a clear title.
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Take Advantage of the Tax Credits
When it comes time to file your taxes make sure that you talk to an accountant to take advantage of any tax credits that are available to you as a homeowner. As an example, the interest that you pay on your mortgage is deductible.
Following these steps can help first-time homebuyers to enjoy the home buying experience. It can be a long process and might not go as smoothly as you hoped. But, stick with it and you will be receiving those keys at the closing table in no time.