House For Sale By Owner Sign in a front yard of a house

First Time Home Buyer and Real Estate Checklist

Did you know that first-time buyers account for more than 38% of all home buyers? That’s a figure that has dropped considerably over the last couple of decades.

Buying your first home can be both exciting and daunting. It may seem like there are lots of hoops that you need to jump through when taking your first steps to home buying.

So, what do you need on your real estate checklist when you’re a first-time buyer?

In this article, we’ll look at the home buying process

Your Real Estate Checklist

If you’re a first-time buyer, the buying process will be completely new to you. Here is a home buying checklist in brief.

  • Determine your budget
  • Get pre-approved for a mortgage
  • Find a real estate agent
  • Visit houses
  • Put in an offer
  • Get an inspection
  • Get an appraisal
  • Close the sale

Let’s take a look at how to buy a home in more depth.

Determine Your Budget and Get Pre-approved for a Mortgage

Before you can even start looking for a home, you’ll need to determine your budget. It makes no sense to start house hunting until you’ve got an idea of what you can afford.

The best way of doing this is by speaking to a mortgage company and getting pre-approved for a home loan.

The lender will review your income and your credit score. They will then agree on a set amount of money that you can borrow. Once you have an in-principle mortgage agreement, you can start to find your perfect home.

Find a Real Estate Agent

Once you know how much you can spend, start speaking to real estate agents. Give them your budget and any requirements that you have from your home. Your real estate agent will then give you some suggestions for homes that suit your needs.

Visit Houses and Put In an Offer

Your real estate agent will then take you on tours of the homes that suit your needs. It can often be helpful if you take a tape measure with you when you view a home so you can see whether your furniture will fit.

It can be easy to become emotionally attached to a property that you view. If you’re 100% sure you like a property, put in an offer on it.

If you know you want to buy a home, submit an offer as soon as you can. It may get sold if you wait.

Get an Inspection and Appraisal

Getting your potential new home appraised and inspected is vital. The appraisal will confirm the property’s value for your lender, and the inspection will let you know whether there are any concerns about the structure or integrity of the property.

Once you’ve had these carried out, you may want to renegotiate your offer if the surveys flag up any issues.

Close the Sale

Once you’ve ticked off every box on your real estate checklist and the deal is going ahead, it’s time to close the deal. That means signing the papers and exchanging funds.

For more help understanding how to buy a home, speak to our team of experts today.

Young happy couple receiving house keys from real estate agent. Giving keys of new house to young couple. Smiling couple signing financial contract for mortgage.

Buying a Home? 6 Tips for First-Time Home Buyers

Excitement is in the air when it comes to being a first time home buyer.

In 2019, the United States saw the largest boom among first time home buyers. Of the millions that bought homes, 29.8 percent of the national market was made up of new home buyers. This is a five percent increase in comparison to previous record numbers.

If you’re soon to join this list, you’ll want to know these 6 tips for first-time home buyers before putting in an offer.

1. Previous Debt and Emergency Funds

Before you add debt to your credit history, make sure you have the money to make a smart decision.

Home buying is expensive. This is especially true depending on the type of neighborhood you live in. Aside from the upfront costs of purchasing a home, you’ll be making investments in the property and any maintenance necessary.

Make sure you have enough emergency money and previous debt eliminated.

2. Set a Budget

Before you start saving money you need to determine your home-buying budget. First time home buyers rush into the process without reviewing their finances.

You can use helpful online resources to help you determine what your budget is. Settle on a price range that reflects your budget, relationship status, credit score, down payment, and location.

3. Consider Mortgage Options

There are a few different categories of mortgage options when you’re looking to buy a home.

Conventional mortgages, FHA, USDA, and VA loans are all worth looking at. Depending on your situation, one may provide a better interest rate or payment figure.

The longer the loan is in years is linked to the interest rate of the loan. Fewer years means higher payments but less interest paid over time. Choose an option you can afford.

4. Closing Costs

Buying a house is the beginning of additional fees you’ve never heard of. Closing costs on average cost about three to four percent of the purchase price of your home.

They’re necessary to pay the appraisal, home inspection, credit report, attorney, and homeowner’s insurance. Make sure you’re keeping closing costs in mind when you’re budgeting for a home.

5. Ignore Emotional Attachment

It’s easy to fall in love with a house you can’t afford. Emotional attachment is the root of making poor life choices.

Although this sometimes doesn’t backfire, getting too attached when buying a home can string your money out thin. Make sure you’re following the six tips for first time home buyers that we’ve laid out.

If not, you might find yourself bidding out of your price range.

6. Unicorns Don’t Exist

Unicorns, or the perfect house, is a common term in home buying. Although you want your first home to check all the boxes, it doesn’t have to.

Sure, sometimes the perfect situation falls into your lap. Most of the time this isn’t the case and if you find yourself waiting around for the house that checks all those boxes you might be waiting forever.

Follow These 6 Tips for First-Time Home Buyers

If you’re ready to use these 6 tips for first-time home buyers and make an offer, you need a company you can trust.

Next Home Elhm Reality is there for you. Tips for first time home buyers can make a break a purchase. If you’re led astray you’ll find yourself overpaying with additional stressors you don’t need to force on yourself.

That’s where we come in. Give us a call today to discuss some excellent Minnesota homes we have listed on our website.

You’ll be glad you took the time to prioritize your future home.