Keep these helpful insights in mind as you get started on the homebuying process.
Buying your first home is a remarkable milestone that marks a new chapter in your life.
To help you approach the path to homeownership with confidence, here are six important things every first-time homebuyer should know.
1. You need to budget for more than just the down payment
The earlier you can start saving for a house, the better, especially since the cost of homeownership entails more than just the down payment. You’ll need to consider other expenses like potential closing costs, moving fees, monthly mortgage payments and ongoing maintenance to ensure your property retains its value.
2. Getting pre-approved for a mortgage can speed up the homebuying process
It can be helpful to get pre-approved for a mortgage ahead of shopping for homes. During the pre-approval process, a lender will consider multiple factors – like income and credit history – to determine how much house you can afford. A pre-approval letter, which typically remains valid for 60-90 days, will outline the amount you may be eligible to borrow and show home sellers that you’re a serious buyer.
This process can ultimately help streamline your transaction. When you make an offer on a house, the lender will already have insight into your financial background.
3. It’s helpful to work with a trusted real estate agent
A trusted real estate agent brings immense value to the homebuying and selling processes. They leverage their skills, experience and market knowledge to help ensure a smooth transaction. When you’re buying a home, an agent can find prospective properties, translate industry lingo, use effective negotiation skills, advocate on your behalf, suggest the best professionals for adjacent services like mortgage and moving, and so much more.
What’s great: Every 30 seconds, a RE/MAX agent helps someone find their perfect place.
4. Market conditions change regularly
The housing market is ever-changing – and conditions vary from place to place. Plus, other things like seasonal change, economic factors and interest rates can impact homebuyer and seller trends. Talk to your real estate agent about local market conditions and how they may impact your transaction.
5. Fixer-uppers can be good options – but make sure you’re prepared to take on the task
A fixer-upper is a home that needs some updating – be it outdated or dilapidated – and the project could range from making simple fixes to orchestrating a complete overhaul. Purchasing a fixer-upper gives great opportunity to customize the place you live, but it’s important to consider the time and resources the renovations may require.
If you opt for a fixer-upper, carefully evaluate the findings of the home inspection, the scope of repairs needed, your renovation budget, any required permits and your accommodation plans during the renovation process. Taking on a home that needs some work can present challenges, but with the right preparation, it can be incredibly rewarding.
6. Owning a home is an incredible milestone
Purchasing your first home is an incredible achievement worth celebrating – and the benefits of homeownership are numerous. Once you’ve navigated the process, you can take pride in your accomplishment and enjoy the perks of this new beginning.
Looking for guidance on buying your first home? Check out the RE/MAX Homebuyer’s Guide – and connect with a local RE/MAX agent today.
Article originally appeared on RE/MAX.com.
