If you are looking to buying a home for the first time, you might have some nervousness stemming from the current financial and political economy. The good news is, long-term investments in housing can be a smart move at any time, as long as this is locked in properly with a mortgage that works for you and your family. Here are five tips for first-time homebuyers that should be taken into account during the current economy.
Five Tips for First-Time Homebuyers in the Current Economy
- Know Your Budget
While you might have an idea of what you want in a home and what you have saved for this, you might not have an exact read on what type of mortgage you will qualify for, and ultimately how much home you can afford. Other nuances need to be taken into account, such as extra savings put aside for closing costs. Even though homes can be a great investment with refinancing opportunities, tax deductions, and increase resale value in the long run, knowing what you are ready for from day one is the first step.
- Be Realistic With Wants Versus Needs
Especially if you are looking to purchase your first home with a partner, make sure that you are both on the same page when it comes to possible deal-breakers in a home. If you know your budget, this can guide your decisions along the way. These days, you can find many fixer-uppers and short-sales on the market. You might not necessarily need to spring for the most up-to-date home with all of the trending decor you love. These are enhancements you can add to your wish-list once you move in and can take on as updates when you have the funds to do so.
- Work With a Mortgage Company
If you can get pre-approved for financing, you will be a much more appealing homebuyer to sellers. Mortgage consultants can help with locking in great rates, and the right mortgage company will have the technology set up to ensure that your financing and buying process is streamlined and safe. If you can work with a competitive mortgage broker that can make sure your ducks are in a row before putting in an offer, you will be in a better position to close on your dream home.
- Thinking Long-Term
There are plenty of nuances that can come up during the home buying process, but as a first-time buyer, it is a good idea to take a step back and look at the big picture. While you might want a better home than you can afford, if this is your starter home, you will have room to remodel or move into a new home down the road. Coming into a housing market within a strong local economy can help get your foot in the door for future investments down the road, so that you don’t get discouraged today.
- Know Your Local Market
While the overall climate of the financial and political economy might seem unstable, it is important to focus on local market trends as well. Depending on where you are looking to buy can make a huge difference in competitiveness and timing for putting in offers and closing on a home. Some areas such as a trending neighborhood or urban space will always be a great investment and can give you confidence in your buying choices. Be sure to widen your options by visiting plenty of open houses and familiarize yourself with market comparisons so you know how far your budget will stretch within the housing market.
While purchasing your first home can be a combination of excitement and stress, knowing your own limits along with the current economic climate can help you make informed decisions. It is important to keep your financial outlook on the forefront of your search, as securing the right mortgage at any time is important.
If you're a first time home buyer, let us help guide you through the process.