Many millennials are getting poised to buy their own home but are at a loss on how to begin. For those young people prepping for this next step into adulthood, here is a quick home buying guide:
Step 1: Know what it means to be a homeowner
Buying a home is one of the biggest purchases one will ever make so it’s only wise to be prepared for whatever this entails.
As opposed to renting, there are more responsibilities that come with being a homeowner. But then there are benefits like privacy, freedom, stability, tax advantages, and the opportunity to build equity.
Step 2: Think of the costs
There’s more to buying a home than paying what’s on the price tag. There are hidden costs like the down payment, buyer’s closing costs, move-in costs, property taxes, insurance payments, monthly utility costs, and maintenance fees. Other fees like property taxes and closing costs vary from state to state and county to county.
Step 3: How the home fits in the grand scheme
Before actually buying a home, one should know beforehand how this purchase will fit in their grand scheme of things. A home is a long-term investment so it should complement one’s goals.
One should ask the role this house will play in their life. Will it be a forever home for starting a family and eventual retirement? Or is it a starter home to be upsized later on? It’s also important to consider other factors such as the location and overall feel of the community.
Step 4: Look at finances and set a budget
When figuring out one’s finances, everything should be included like their monthly income, student loan debt, credit card debt, savings, and credit score. Then they can find a lender and ask for a pre-approved mortgage.
A pre-approval will help in setting a price range in looking for a house. This also puts one at an advantage as it tells home sellers how serious the buyer is, as well as how much they can afford.
Remember, it’s never wise to go beyond one’s budget because costs could pile up and become a burden.
Step 5: Shop around and don’t rush into things
Finding one’s dream home may be harder than how most television shows make it seem. Patience can be rewarding, though, and it brings with it the perfect house that fits one’s needs. For this to happen, make a list of features that a home must have and a list of the ones one can live without to make the house hunt easier.
It’s also good to shop around for different neighborhoods as well as mortgage loans. Different lenders offer different financial options, so look for one with the best deals.
Step 6: Hire a real estate agent
There is only so much that Googling and YouTube instructional videos can teach about home buying. If one is truly serious about buying a home, the best way to do that is with professional help.
A good real estate agent will help in coming up with more informed decisions and acting as a guide in the often-complicated process of buying a new home.
It’s important to find an agent who is trustworthy and has a good reputation. Check out their website for testimonials or ask for referrals to make sure of their reliability.
The team of expert brokers at Miscella Real Estate is professional, dedicated, and go above and beyond for their clients. They will be there to guide and educate first-time buyers at every step of their transaction. Get in touch with them at (630) 232-1570 or send a message to info(at)miscella(dotted)com.