How To Purchase Real Estate As A First Time Buyer

Buying your first home is one of the most defining things you will do as an adult. However, due to the high cost and commitment of purchasing a home, there are many things that you will need to closely consider. Also, as a first time buyer, the entire process of buying real estate can seem quite complicated and frustrating. So, we will look at a few tips and guidelines that will help you to find a great home, take advantage of any incentives and ensure you are fully satisfied with the property.

Firstly, before you can purchase a home, you will need to have a stable income and the required downpayment. The downpayment for most homes is about 20% of the value of the home, but this figure is flexible according to your lender. Also, many first time home owners can access lower downpayments, depending on where you live. As a result, you need to do your research and talk to a variety of lenders and not just your local bank. However, regardless of the percentage, you will need to save up for a downpayment as well as the legal fees. So, for example, if you are interested in buying a home that costs $400,000, then you should have at least $80,000 in the bank.

Next, as a first time home buyer, you should look into any governmental incentives that may exist that you can benefit from. This depends on where you live, but most states offer a tax relief incentive that you can file for in the year that you purchase the house. This can help you to save thousands of dollars in legal fees, so it is in your best interest to do your research.

In addition to looking at your finances, actually finding the right property is next on our list. You should have a good idea of what neighborhood you would like to live and be realistic of how much a property there would cost. If you’re not sure about the neighborhood then you should consider the ones that are closest to your workplace, various schools and all the amenities that you need. It makes no sense to buy a house that is hours away from your workplace since you’ll be absolutely miserable with the daily commute. Of course, you should not only consider your own daily schedule but that of your partner, kids etc.

Lastly, it is highly recommended that you hire a real estate agent, especially as a first time buyer. They will provide a great deal of guidance and will be able to find the right home for you, based on your needs and budget. They will also be able to help you to sort through the legalities of purchasing a home and translate all the documents so that you have a better understanding of the process.

In closing, if you’re ready to buy a home, then you should definitely take the above advice into consideration. It will not only make the process easier but also save you a lot of money, time and effort.