5 Things You Need To Know Before You Buy Your First Home
The time has come to make the next big step in your life – buying a home.
The Galaxy Lending team loves working with first-time buyers, and we will ensure that you feel comfortable throughout the entire process. You may be an experienced house or apartment renter or you’re taking the leap from mom and dad’s basement, regardless, buying your first house is important.
Pick a place that fits your livelihood
Location and size are important when it comes to choosing a place to settle on. Looking to meet people your age for the weekend? Choose a place close to nightlife. On the other hand, those looking to raise children in a more family oriented area should search more in suburbs close to good schools and other kid-friendly activities, like sports fields and parks. Distance in relation to work is another key factor for consideration. If you work in a busy city sometimes finding a place far enough away that you’re outside of the busyness can be a downfall when it comes to commute time. Choose what costs you’re willing to take on and what things you can’t sacrifice, from there narrow it down to your price range.
Know what you can afford
Going into the home buying process without proper finances is a poor decision, which is why those considering buying a home should have good credit and a safe amount in their savings account. Our lending team always works with our buyers to ensure they know exactly what they are able to afford. The excitement of choosing a place to call your own for more than a year or two in the future can lead to searching outside of your price range. The loans the bank can provide you may be enough to purchase your dream house and then some, but keep in mind that the more you take out, the longer you’ll have to spend paying it back and in turn the more interest will be accrued on those payments. Make sound financial decisions for your current and five-year financial state.
Your purchase price reflects the home’s true value
You’ve searched up and down through every home buying website and have found the perfect house: The neighborhood is safe, the location can’t be beat, and the price made your jaw drop. It’s like you couldn’t have found a better location, so there has to be a catch right? Right you are. The house is more than just a fixer upper, it’s a long-term project. You go and visit it, noticing that it has potential, but beware! Houses pinned as fixer uppers can have more problems than what meets the eye. Old plumbing and faulty wiring could be the first of the hidden evils, and the more you come across, the more costs you’ll take on for the maintenance. Your first home is typically not your forever home, unless you plan on seeing yourself in this fixer upper for a decade or more, don’t make the investment to eventually come out with a loss.
Plan to live there for at least five years
Rarely does it occur to people to think about a time frame for moving out of their first home without having even moved in. A great step in the process of searching for and purchasing your first home is to consider how long you plan to stay in that location. Does your job relocate you often? Home agents will tell you that it’s not wise to settle on a place unless you make the commitment to live there for five years. This is usually the break-even point for when payments on the mortgage are more prosperous to you as an owner than as a renter. Also, owning a home is enough incentive to take on maintenance projects so you can love the place you live longer. If you put in a lot of money only to sell your house for less than your total investment, it’s probably not the smartest idea to make the move of home ownership just yet.
Talk to the Experts
Consulting someone with expertise can greatly improve your chances of a better home buying experience. Housing agents will help you target places in your price range while also staying conscientious of finding a place suited for your livelihood. Discussing money with a lender will set you up on the right path for pre-approval of a mortgage and give you the best advice for homeowners insurance. Although the use of some expertise services are another cost to incur, it can save you a lot of headaches when it comes to finding the right home for you.
The Galaxy Lending Group team is experienced and can’t wait to support you throughout your home buying journey. Read the reviews of our happy customers, or learn more about our available loans.