Are you in the market for your first home this spring? Becoming a homeowner is an exciting time in your life, but there are a number of potential pitfalls, too. This is probably going to be the largest single purchase you ever make during your lifetime, and you want to make sure that you do it right. Before you sign any documents, make sure you think things through and ask plenty of questions so that you are a knowledgeable first time home buyer.
What Every First Time Home Buyer Should Be Aware Of
- There is a difference between how much your bank will lend you and how much you can really afford.
The amount of money you can qualify for doesn’t take into account that you will be responsible for repairs and upkeep to your new home. It’s a good idea not to “max out” the full amount you can borrow for your mortgage so that you have a cushion in your budget for these necessary amounts.
- Your deposit will need to be paid within 24 hours of an accepted offer.
In most cases, you will need to pay about 5 percent of the purchase price at this point, but it is something that can be negotiated. Make sure that you have access to the funds at the time you make the offer and that they can be transferred within this time frame.
- Always have a home inspection performed on the property as a condition of making an offer.
You’ll want to know whether there is anything that needs to be repaired or corrected that would make the property uninsurable. You also want to know whether there is anything that requires immediate attention, as well as any major repairs required and things that will need your attention further down the road.
- Closing costs need to be paid to complete your purchase, and they may be higher than you had anticipated.
You’ll need to budget for land transfer tax, lawyer fees, appraisal fees, and adjustments paid to the seller for property taxes and utilities paid to date.
- Find an experienced realtor to help you find a home.
A realtor can help you find the right home to suit your needs and budget, help you complete the offer to purchase and help you negotiate the deal.
As an experienced real estate professional, I can help you find a house that you will be proud to turn into your first home. Call me today and we can start the process together.