By Jimm McKinley
Buying your first home is a major milestone, a sign that you’ve made it. It’s also a huge financial decision that can be incredibly stressful at times. If you buy a home in poor condition or spend more than you can comfortably afford, that stress will persist long past closing.
That’s not to say you shouldn’t buy a house — far from it! Homeownership has many benefits, like the freedom to remodel and decorate to your tastes, protection from expensive rent hikes, and the potential to grow your net worth. But if you want home buying to be a good experience, there are a few pieces of advice you need to follow.
1. Get your finances in order before shopping for a mortgage
Lenders factor your income, debt, and credit score when assessing your mortgage application. A large debt load could prevent you from getting a mortgage big enough to buy in your preferred area. A low credit score could land you with a high mortgage rate — and that will cost you.
Before house hunting, pull your credit score and report. Identify factors hurting your credit score, like big credit card balances and accounts in collections. If you improve your credit score before shopping for a mortgage, you’ll benefit from lower rates.
2. Know what you can afford to spend
Just because a lender approves you for a big mortgage doesn’t mean you should spend that much. The amount of house you can actually afford depends on more factors than your income. Take Charge America recommends writing out your monthly household budget to determine what you can afford to spend on housing. Don’t forget to factor other big-picture financial goals like saving for retirement or your kid’s education into your budget, and don’t forget to include the full costs of homeownership, not just the mortgage.. Weigh your mortgage options carefully
Fixed-rate or adjustable-rate, 15-year or 30-year, government-backed or conventional — there are a lot of decisions to make when shopping for a mortgage. Do your research before meeting with lenders. When you’re ready to get pre-approved, shop around with different lenders to compare rates, fees, turnaround times, and other factors.
4. Know your must-haves and your deal-breakers
Don’t get swayed by a beautiful home that’s all wrong for you. Go into your house hunt with a clear understanding of the characteristics your home absolutely must have and the ones you can’t tolerate in a house.
It’s not much use listing requirements if they don’t match what’s actually available in your market. As you dream up your perfect home, research homes for sale in your area to get a feel for the options. With homes selling around $253,000 in Leominster, MA, first-time buyers can find great homes within their budget. However, you might realize you need to compromise on certain features to find a home you can afford.
5. Don’t wait until the last minute to start packing
Square Cow Movers puts it perfectly: “The sooner you start packing the less stressful the process will be.” Start packing as early as possible, beginning with items that are rarely used. You won’t miss off-season clothes, lawn equipment, and recreational gear if they spend a few weeks boxed up. And by packing it now, you spare yourself added stress when you’re busy closing a sale and moving. Packing early also gives you ample time to downsize your stuff so you don’t pay to move unwanted items.
Buying a home that’s all yours is a lot different than moving to a new rental. Searching for homes, applying for a mortgage, and closing on a sale are all complicated and time-consuming. Rather than navigate your first home purchase alone, hire a team of professionals to help you through the process. You’ll not only save yourself stress, you’ll buy feeling confident about your purchase.
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