Important Things to Do Before You Buy Your First House
- Posted on May 25, 2015
Buying a house for the first time is both exhilarating and terrifying. Making a large purchase and committing to mortgage payments for 15-30 years can be hard. However, the more you know about purchasing a house, the better prepared you will be.
Get a Realtor and Get Pre-Approved for a Loan
Realtors are a great resource for homebuyers, because they know the market. Realtors can give you information on good areas to live and help you figure out if what you’re looking for is realistic. They can also provide you with more accurate information about available houses on the market than you can find on many sites.
Chances are you’re going to need a loan in order to buy a house. Getting pre-approved can help you to figure out exactly what kind of loan you qualify for and how much you can reasonably expect to get approved for. Your realtor can help you with this process, either doing it themselves or recommending someone for you to talk to.
To get pre-approved for a loan, you will need verification of your employment and how much you make, your credit score, tax information, and any debt that you have, including student loans. All of these factors work together to determine the kind of loan and interest rate that you are eligible for, which will help you set a realistic budget.
Figure Out Your Wants and Your Needs
Sometimes we get our wants and our needs mixed up. When you look at houses, you need to figure out what things are important to you and what things would just be nice. For instance, is not having a big fenced-in backyard a deal breaker for you, or is it just something you think would be nice if it’s available?
Knowing the difference between what you really care about in your future home and what doesn’t matter too much is important. It’s also important to let your realtor know the difference, so that they’re looking for the right kind of houses for you.
You should also decide how much you want certain features. For instance, are you willing to spend $10,000 more on a house with a more modern kitchen? Keep in mind that one of the perks of owning a house is that you can remodel it however you want. In some cases, it might be cheaper to buy a house with less amenities, and then renovate your home to fit your wants and needs.
Look at a Lot of Houses
Looking at houses can be tiring, and sometimes discouraging. You want to find the perfect house, but finding that house within your set budget might take some time. However, the more houses that you look at, the better your chances are of finding your dream home.
If you’re looking to buy a house in an area close by, you should try to set up as many open houses as you can, so that you can go and walk through the houses you’re interested in. If you live farther away, you’ll probably have to do a lot of your initial looking online. You’ll still want to set aside some time to go and visit some houses, though, before committing to anything.