Owning a home is a part of the American dream. Having a place to call your own represents the fruits of your labor – the fulfillment of an aspiration you worked hard for.
And work is the operative word. According to the National Association of Realtors, the median price of homes sold across the US in May of 2019 was $277,700.
For the majority of people, a mortgage usually provides the cash needed to purchase a home. The amount will then be paid off in installments for a predetermined number of years until the debt and the interest it accrues is cleared.
For first-time home buyers, the process can be daunting and stressful. However, if you follow a few tips as addressed in this article, you can avoid the many problems first timers experience.
- Determine how much house can you afford
- Create a non-negotiable list
- Create a budget
- Involve an expert
One way to know for sure how much house you can afford is to get pre-approved by a bank or a lender. During this process, you provide information about your income and debts to help the bank determine the maximum amount you can borrow. You will receive a pre-approval letter which may give you an advantage over other buyers while you’re shopping.
You know what you want in your dream home. You know every little amenity – from the gourmet kitchen to the bathroom light fixtures. Unfortunately, most people can’t afford everything they want as first-time homebuyers. You can get the things that are most appropriate to you, however. Start by making a list of everything you want. When that’s finished, go back through and choose the things that you cannot live without. These are your non-negotiable items. Everything else goes on a list of bonus items. Your non-negotiable list will not only keep you in check, it will also help your Realtor find the perfect house for you.
When creating your budget, include everything you can think of–utilities, mortgage payment, taxes, insurance, groceries, gas, prescriptions, and clothing. Anything you spend money on should be on your budget. Don’t forget to add costs of redecorating or remodeling your new home. All these expenses should be factored into your budget. If you need help, consult a professional financial planner. Remember, its one thing to create a budget, but quite another to stick to it! Probably the most important part of this is to use the budget once its in place.
When shopping for a new home, you can either do it yourself or engage a professional to help you get your dream home for the best possible price. Using a real estate agent is a great way to make sure this happens A good agent has experience, which is what you need. They will help you get the best deal and guide you every step of the way throughout the process. They’ll answer your questions and offer advice. A good agent will have connections in the real estate business to help you find the gem that others may have overlooked.
By following these tips, you should find the process of locating your perfect home and securing a mortgage relatively pain free.
If you’re looking for homes for sale in Turlock, CA and its surrounding areas to fit your budget, let our team at Soldavi Realty help you. We built our reputation by creatively looking for new opportunities and consistently providing exceptional customer service. Let our team help you fulfill your real estate dreams. Call 209.975.7653 or send us an email at [email protected].