Six Tips for First-Time Homebuyers
In 2019, a third of homebuyers were purchasing their first home. According to the Bureau of the Census, first-time homebuyers are more likely to purchase small homes, choose to live near urban areas and buy a home built prior to 1960.
If you’re thinking about purchasing your first home, there are a few things you should know.
Before you start looking
It’s best to get your finances in order before you start looking at homes. Pay off any existing debt, check your credit score and put together an emergency fund for unplanned expenses. Your next step should be to save up for your down payment and closing costs.
Additionally, get pre-approved for a mortgage as early as possible. It will speed up the buying process once you find the right home, and it gives you an idea of how much home you can afford.
Programs for first-time homebuyers
The North Carolina Housing Finance Agency offers NC Home Advantage Mortgages with a low fixed rated. As a first time homebuyer, you can qualify for $8,000 in down payment assistance.
What to look for in a home
These tips will help you narrow your options down:
Buying in a seller’s market
Even though there are local trends for the real estate market, the current overall trend is more sellers than buyers. It’s a seller’s market, and this environment can be very competitive for buyers.
Getting pre-approved for financing shows you’re serious and allows you to make an offer right away. Don’t expect the seller to cover a part of the closing costs, and make the best offer you can.
Finding a real estate agent
Hiring a real estate agent represents an additional cost, but their negotiation skills can make a difference. Look for someone who has experience with the price range and neighborhood you’re interested in. Ask about their license and certifications, check online reviews and request some recent references.
Additional budgeting tips
A common mistake first-time homebuyers make is to assume that they won’t have to cover additional expenses once they make a down payment and cover the closing costs. It couldn’t be further from the truth:
If you’re thinking about purchasing your first home, there are a few things you should know.
Before you start looking
It’s best to get your finances in order before you start looking at homes. Pay off any existing debt, check your credit score and put together an emergency fund for unplanned expenses. Your next step should be to save up for your down payment and closing costs.
Additionally, get pre-approved for a mortgage as early as possible. It will speed up the buying process once you find the right home, and it gives you an idea of how much home you can afford.
Programs for first-time homebuyers
The North Carolina Housing Finance Agency offers NC Home Advantage Mortgages with a low fixed rated. As a first time homebuyer, you can qualify for $8,000 in down payment assistance.
What to look for in a home
These tips will help you narrow your options down:
- Create a list of requirements you absolutely need and preferences that wouldn’t be deal-breakers.
- Establish a price range. Be realistic about how much home you need and what you can afford.
- Research the neighborhood. Is it a good fit for your lifestyle?
- Think about the long-term. Look into career opportunities in the area and research schools, even if you don’t have children yet.
- Be rational. It’s easy to fall in love with a house, but remember that your decision should be rational.
- Take the time to shop around. Go to open houses to see what the market is like.
- Consider renovation costs. A fixer-upper can seem like a great fit for a small budget, but you need to be realistic about how much you can invest in renovating a home.
- Inspect the house. Don’t hesitate to pay for your own home inspection to look for potential issues.
Buying in a seller’s market
Even though there are local trends for the real estate market, the current overall trend is more sellers than buyers. It’s a seller’s market, and this environment can be very competitive for buyers.
Getting pre-approved for financing shows you’re serious and allows you to make an offer right away. Don’t expect the seller to cover a part of the closing costs, and make the best offer you can.
Finding a real estate agent
Hiring a real estate agent represents an additional cost, but their negotiation skills can make a difference. Look for someone who has experience with the price range and neighborhood you’re interested in. Ask about their license and certifications, check online reviews and request some recent references.
Additional budgeting tips
A common mistake first-time homebuyers make is to assume that they won’t have to cover additional expenses once they make a down payment and cover the closing costs. It couldn’t be further from the truth:
- A local move costs $500 to $2,000 while a long-distance move can cost $2,000 to $7,500.
- Home maintenance costs 1 -2% of the value of the property each year on average.
- Additional expenses include property taxes, utilities and homeowner insurance.
- You will probably need furniture and appliances for your new home.
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