Owning a home is a dream that’s still high on many young Americans’ list. In fact, on average, the first-time homeowner is usually 33 years old. Thus, given the relatively young age of a first-time homeowner and the magnitude of this undertaking you can see why it’s no laughing matter. In fact, buying a home is still a daunting process, even for those with a good amount of experience. Luckily, we at Grand Homes have a few tips to help streamline the process for you. Let’s get to business – a Grand experience awaits you.
Apply for Mortgage before Looking for which House to Buy
Homes are no meager investment. In fact, they’re quite pricey – in case you never noticed. Thus, unless you’re extremely wealthy, you’re going to need mortgage to pay for one. At Grand Homes, we can’t stress this next point nearly enough: Do not shop for a home before you find out what your mortgage deal will look like. Although the DFW real estate market is incredibly competitive right now, don’t let that force your hand. It’s one of the most common mistakes a first-time homeowner makes. If you stretch yourself financially to get the home of your dreams, you could very easily lose that same home further down the road. You need to come to terms with what limitations your credit and finances will place on you. Subsequently, once you’re approved for a mortgage, you get a clearer picture of which homes you can get. Also, make sure you get a fully underwritten pre-approval. This goes a long way in proving to sellers that you are a serious buyer.
Have a Budget
Make sure that you determine what you can afford without overstretching your finances. You never, ever want to drain your savings – that goes for a car, a home, a pet tiger, anything. Many first-time homebuyers often choose beautiful homes that fall outside of their price range and still go for it. We respect boldness and we know how good it feels when you think you’ve found “the right one”. However, practicality breeds longevity when it comes to a first-time homeowner’s decisions. Make things easier for yourself and determine your ideal price range well in advance. It’s as simple as using an online mortgage calculator. Through that app, you can find out the maximum monthly payment you’ll make on your house according to its price and your credit score. It’s also worth noting that the average first-home homeowner spends 11 years in their first house. Also, don’t forget to factor in maintenance costs to that figure. Depending on the age of your home, that maintenance costs can vary wildly.
Go for what is Affordable
Once you’ve determined that you can afford your monthly payment and you’ve drawn out a comprehensive budget, stay within those lines. This is how you make sure you make sure the IRS don’t come after your home years later. It’s key not to drain your savings or disrespect your financial limitations. If you find a gorgeous home but find out that it’s well outside of your price range, leave it and move on. Perfection is an overvalued commodity in the real estate game. First-time homeowners should understand that they should never eliminate solid candidates in their quest to find “the one”. Homes can grow on their owner and take on the character of their inhabitants. It could be the best home you never knew you needed.
Use an Experience Realtor
Your realtor has a significant effect on your home buying experience. A reliable realtor will have extensive knowledge of the real estate market in your area of interest. They’ll even be able to connect you to credible loan officers and real estate attorneys. On your search for your realtor, please be sure to consult with friends and family. You’ll also find realtors ratings on sites like Zillow, Trulia and Streeteasy.
Understanding what needs to be done at what point and working with an experienced realtor can make the entire process seamless. Once you’ve found your realtor, Grand Homes is your best bet for a new home in the Dallas-Fort Worth metroplex. Contact us today and start your journey to owning your first house.