5 tips for first-time home buyer, Property buying guide, New house purchase advice

Tips for First-Time Home Buyer

10 Mar 2021

Buying a home for the first time can be a daunting task, but you don’t have to go at it with no information. Here are some basic tips that will help make the home buying process easier. And keep in mind that you don’t need to have a great credit score to get a fair mortgage, as this resource from 1st UK mortgages makes clear.

First-Time Home Buyer Help

1 – Consider Hiring a Real Estate Agent

You don’t have to go through the home buying process alone. Real estate agents can be valuable partners. An agent will work with you throughout the entire process to see that your needs and best interest are met.

Source different agents and get a feel for how you and the agent mesh. An experienced agent can and will represent you as the buyer and ensure that your best interests are kept at the top when looking for homes and while negotiating purchase terms.

2 – The Seller’s Asking Price Is Not Final

The full asking price is not the end-all-be-all of the deal. Your offer does not have to match the full amount that is being asked for. Rely on your real estate agent’s advice, especially as a first-time homebuyer. They will help you to determine how much you should offer.

You want to make a competitive offer that stays within the limits of your budget, and also reflects the value of the home. Your agent can help you with this.

Many sellers are open to negotiating when an offer is on the table. This is one key reason why real estate agents can be a crucial part of the homebuying process. Your agent may be able to negotiate a price more in-line with your budget and better terms where the seller agrees to pay closing costs or costs of repairs found during the inspection that need to be taken care of.

3 – Know What You Need

Take the time to truly consider what it is you need in a new home. A dream house is nice, it’s a dream for a reason, but it’s not always necessary—especially at the expense of funds or comforts that you can’t or shouldn’t allow.

The future is always changing, and what you think you need now, might not be viable in a few years. Do you have kids? Do they need separate bedrooms, or is a shared room better? Do you need a home office space? Larger garage? Big backyard for the pets and kids to play in?

These are some of the considerations you should think about when purchasing a new home.

4 – Take Your Time Making Any Decisions

Don’t let yourself feel pressured or rushed to make an offer on a home, accept rates or terms without a full understanding of them, or without knowing what other lenders could offer you. Taking your time on any decision, especially a hefty one like buying a home, is always a good practice.

Think about your options and consider everything that’s available. Instead of acting on impulse or emotion, feel confident and reassured that you have become as well-informed as you can.

5 – Know Your Mortgage Loan Options

Many people might think that a conventional loan is the only option available to them when buying a new home, but the reality is quite the opposite. There are many loans out there, and many people can and do qualify for them—like FHA or VA loans.

Many lenders offer the option of choosing between an Adjustable Rate (ARM) or a Fixed Rate Loan. There are pros and cons to every mortgage loan option. If you’re feeling a little out of your element, considering speaking with a home lending advisor.

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