5 Things First Time Home Buyers Need to Know

new-home-1689867_640Buying a home for the first time can be quite daunting that you might consider just going with the first house you’d like or just go back and rent. When you decide to go on this path, it shouldn’t be taken lightly since it’s a quite a big deal – after all, it’s one of the largest purchases you’ll ever make. You don’t need to rush into home ownership even if it’s a sign of being a financially responsible adult. This is a huge commitment plus it involves a lot of work.

It is also important that you know what you’re getting into and be prepared with as much information as you can so that you can understand the current real estate market – it’s actually better when you know more. So here are the things that first time home buyers need to know so that the process can be a bit easier when you go through purchasing a home:

Know how much you can afford.

It is essential that as a first time home buyer that you should have an idea of how much money you can borrow for your home purchase and how much you can shell out for monthly payments along with other miscellaneous expenses that comes with owning a home. To be able to pay for your first home, you’ll need a good credit score, a stable job and cash for downpayment.

Get pre-approved rather than getting pre-qualified.

This can be quite confusing especially for first time homebuyers but what you really need is to get pre-approved since more information is checked and you’ll have a better idea how much you can afford. Also, when you are pre-approved, you’ll be in a better position to negotiate with the seller as they will see that your offer is solid.

Consider financing options and know your credit score first.

As a first time home buyer, you should obtain a copy of your credit report and check for any errors. Even if you believe that you are making payments on time, it’s always best to make sure. Any errors found do take time to fix and repair. This means that your home purchasing can be put on hold until everything is cleared out. Also, it’s possible for first time home buyers to have bad credit mortgages. You can have this worked out and still get a mortgage to buy your home.

Prepare to make an offer.

Once you find the home that you’d like to purchase, your real estate agent should assist you in deciding how much you will offer for the house along with the conditions you will ask for. Your agent will present the offer to the seller or the seller’s agent and the seller will either accept the offer or will do a counter-offer until you reach a deal or decide to not push through.

Get a home inspection.

Before you close the deal on your home, make sure that you obtain a home inspection so that you won’t have to do a lot of unexpected repairs on your end. Once the property has been cleared, you can work out a deal with the seller and close the offer. However if you do find any significant damage during the home inspection that the seller did not disclose, you should negotiate to have the seller make the repairs or consider other options.

Don’t take chances and research as much as you can when you go on this journey of purchasing your own home.

Do you have any other tips you’d like to share to first time home buyers?

Join our newsletter

If you like Critical Financial, subscribe and get our latest content via email.

Powered by ConvertKit

Share this post:

Leave a Comment


May the 4th Be with You: Star Wars Swag on Amazon

May the 4th Be With You: Star Wars Day Swag

It began as the punniest holiday ever but quickly grew into an earnest (if somewhat random) celebration of the long-running (and still... more →
People count the money to buy a house in future success.

Avoiding Mortgage Scams: Don’t Fall for Unreasonable Promises

If it sounds too good to be true, it probably is. That’s sound advice for almost all aspects of life, including the search for... more →
Eat for free for a whole month via the meal kit companies discounts for new customers.

How To Get a Month of Free Food: 9 Meal Kit Companies Offering Discounts to New Customers

Play your cards right and you might be able to line up a month’s worth of free meals if you were to try out all nine of the meal... more →
Generate extra cashflow -- here are 97 ways.

96 Awesome Ways to Generate Extra Cashflow

Who doesn’t want more money nowadays? We’ve got you covered on that front. Here comes a long list of different ideas on... more →
Valentine's Day gifts that won't destroy your budget

Valentine’s Day Crafts Are Romantic Rescue from Crazy Inflation

Fall for the hype this week and you’re out an average of $143.56 for Valentine’s Day. Crafts and other do-it-yourself tactics... more →

Ultimate Guide to Bitcoin — FREE Ebook!

Have we got something for you: a free ebook about bitcoin! more →
Get a flu vaccine.

Why You Need To Get a Flu Vaccine Right Now

Flu vaccines aren’t just for the elderly  anymore. Here are 25 reasons you should go get vaccinated. more →
Financially successful

Acquire the Trait All Financially Successful People Have

Financially successful people tend to all have a lot of self-discipline. Improving your discipline in one area of your life often spills... more →

What’s the Best Free Recipe App?

The Apple Store and Google Play together offer more digital cookbooks than you probably have room for on your mobile device. So which... more →
New tax law might slow down housing market.

What Will the New Tax Law Do to the Housing Market?

The new tax law will have a profound impact on the housing market, although in ways that go beyond the deductibility of mortgage interest... more →

4 in 5 Households Will Get a Tax Cut in 2018

Four out of five U.S. households will get a tax cut as a result of the legislation that President Donald Trump signed into law today. more →
Will bitcoin reach $100,000?

When Will Bitcoin Reach $100,000?

Bitcoin has accelerated its pace of appreciation in recent months, and if the current levels between $15,000 and $19,000 make you itch... more →
The Dow Jones topped 24,000 -- now what?

The Dow Jones Crossed the 24,000 Threshold. Now What?

Stocks appear to be increasing in volatility, yet the markets closed on Monday, December 4 with the Dow Jones Industrial Average is... more →
Peer mortgage

Should You Get a Peer-to-Peer Mortgage?

If you can’t get approved for a home loan from a bank, you might want to look into applying for a peer-to-peer mortgage. more →
Investment gifting is awesome.

4 Things To Know Before You Donate an Investment

While donations of any kind are appreciated, gifting investments benefits both the giver and the receiver. Here are four key things... more →
Are you wondering: What's the Relationship Between the Stock Market and Federal Debt?

What’s the Relationship Between the Stock Market and Federal Debt?

Wouldn’t it be wonderful if gains in the stock market could actually reduce U.S. government indebtedness? If that were true,... more →
TV Saved My Finances, saving money

How Turning Off The TV Saved My Finances

Not too long ago, I was one of those people who came home from work, grabbed a snack, and flopped down in front of the TV. However,... more →