April 22, 2024

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First Home Purchase: Three Things You Can’t Afford to Ignore

Buying Your First Home

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Many things can influence your first homebuying experience. The first one is your finances. Your budget can dictate how much of a home you can buy and afford. Your credit can impact your eligibility to get approved for a mortgage. Even your debt-to-income ratio and employment history can impact your homebuying.

Then there’s your preferences. You might be one who would rather buy a newly built house than a home that requires construction from scratch. You may plan to buy a home in the city or maybe you want a house with a farm.

No matter your plans and preferences, there are certain things you can’t afford to ignore when making your first home purchase. These three things can influence how you make your decision and how your whole experience will be. If there are three essential must-knows that every first-time homebuyer needs to know, that is to never take the following for granted.

Due Diligence

Enough research is a must no matter how small your first home purchase might be. Many things can go wrong if you don’t do enough diligence. Here are a few examples.

When Saving for a Down Payment

Another reason to do enough research is for you to determine how much of a down payment you need to save more in the long run. Experts recommend at least a 20% down payment. There is no way for you to know how much that percentage translates in real life you don’t know how much you can afford in the first place.

When Choosing a Mortgage and a Lender

Many people are guilty of choosing the type of mortgage that they feel most qualified for. Some would pay down less than the 20% recommended down payment just so they can use the money to replace their old furniture. But failure to research the risks of a lower down payment can end up with you needing to pay more feed in the long run.

The same goes when choosing a mortgage lender. Know that you are not locked in with the first lender who pre-approves your mortgage application. You have the option to shop for lenders before choosing one.

Aside from listening to your instinct, look for clues that tell you that you have found a lender you can trust, such as Supreme Lending. Look for lenders that do not discriminate against borrowers and are not taking advantage of you by imposing super-high fees. Consider every angle, not just the fees, requirements, and loan terms.

When House-hunting

Before you go house-hunting, make sure you already get a pre-approval. This way, you can avoid looking for houses for sale without knowing the exact maximum amount you can spend. This will also save you from future heartbreaks in case you find a house that is way over your budget.

Your Gut

There will be times when you don’t know how to explain it but your gut guides you to make the right decision. Your instinct should not be your sole decision-maker. But this is one thing you cannot ignore when making big decisions, like buying a house.

Sometimes, your gut will tell you if you have found the one thing you have been looking for. This is not only applicable when house-hunting. This can start from the moment buying a house came into mind.

For instance, you suddenly felt like you are ready for a home purchase. All the signs tell you that you are both financially, emotionally, and mentally ready to buy and move to your first home. If this is the case, then your instinct is telling you that now is the time to pursue a home purchase.

There is a need to check for other clues before fully trusting your gut. For instance, it may feel like you have found the perfect home after checking houses after houses. Never allow your emotions to take over and listen to what your gut feel is trying to tell you.

Your Nonnegotiables

It is completely necessary that you know what you want before you go hunting for houses. You need to make a list of nonnegotiables or things that are absolute must-haves in your house. This is aside from your preferred location and nearby amenities.

For instance, you need to determine the following.

  • How many rooms you want in a house
  • What features needs to be there
  • The type and size of house and yard space
  • Commute time when going to work, the supermarket, and other amenities

Along with your gut feeling and instinct, you should not forget about your nonnegotiables when making your first home purchase. It can be hard to find the perfect home, especially if you are buying and not constructing a house. But with the help of these three things, you can make your first home experience a more manageable one.