Top 10 Tips When Buying Your First Home

1. Find a Reputable Real Estate Agent

A good agent will look out for your best interest and guide you through each step of the buying process.  We found ours through Dave Ramsey’s Endorsed Local Provider program.

2. Get Your Finances in Order

How much can you afford to spend?  We figured out how much house 25% of our take home pay on a 15 year fixed rate mortgage would buy.  You don’t have to adhere to the same mortgage and percentage we did, but you do need to be conscious of how your monthly payment will fit into your budget.  Take a look at the estimated payment button on Zillow for homes in your area.  You should also read Dough Roller’s post, 5 Ways To Calculate How Much House You Can Afford.

3. Get Pre-approved

Your credit score will be pulled and you’ll have to prove your yearly income, but you’ll eventually have to do all of that anyway. Besides, if you find a home you like and your offer is only one of many, your offer will carry more weight than someone who has only been pre-qualified. Check out Get Mortgage Pre-Approval Online at Money Under 30.

4. Determine Your Needs and Wants

Then write them down. This will be different for everyone.  Do you have kids? How important is the neighborhood?  Proximity to work?  How many bedrooms?  It’s easy to get carried away when shopping.  Knowing what you need and want beforehand will keep you focused.

5. Don’t Be Afraid To Make A Low Offer

Common advice says, “you make your money when you buy, not when you sell.”  Unless you are purchasing the home from your best friend, mother, or in-laws, don’t be afraid to ask for well under list price.  You might offend the seller, and they might refuse to work with you. But this is your first home, not your dream home. In other words, move on and make an offer on another “temporary home.” You’ll probably sell it in a few years anyway, and when that time comes, you’ll hope you are are able to sell at a higher price than you bought.

6. Negotiate

If you follow tip #5, the seller will likely make a counter offer.  At this point, do what feels right.  If you like the offer, take it.  If not, you make a counter.  Remember, the sellers are looking out for their best interest, and I suggest you do the same.

7. Shadow The Home Inspector

Once you and the seller agree on the sale price, find a good inspector.  Especially if purchasing an older home.  As a first time home buyer, you will be surprised at how many problems your potential new home will have.  Most will probably be minor, some not so minor.  Ask your agent if they can recommend an inspector who is happy to have you along and explain each detail until you are satisfied with their answer.

8. Negotiate

Yes, tip #8 is the same as tip #6.  But now it’s do or die.  If the home needs a new roof, ask for it. If it has leaky pipes, ask the seller to fix them.  Ask for money to make repairs.  If you don’t push for what you want now, then you may regret it after the excitement of owning your new home wears off.  For tips, check out Important Tips On How To Negotiate After Home Inspection @ jkrinvestments.

9. Find Homeowner’s Insurance

Again, ask your trusted Real Estate Agent who he or she recommends, but don’t necessarily settle for the first company you contact.  Shop around and get quotes from multiple insurance agents to find the best deal for you.   For more tips, read Save Money on Your Homeowner’s Insurance @ Cash Money Life.

10. Prepare To Move!

The easy part is over.  Check out Ten Things I Learned Moving – And Tips from @ Free From Broke. Good Luck!