5 Things Real Estate Experts Want a First-Time Home Buyer to Know

Keep reading if you're buying a house for the first time. Here are five things real estate experts want first-time home buyers to know before purchasing.

The average age of the first-time home buyer is going up. For example, the average buyer age was 29 years in 1981 compared to 33 years in 2020.

In today's climate, it's more challenging for many young adults to purchase property. People have to work harder and save for longer before being able to buy their first home. However, a few things are pertinent to know beforehand when that time finally arrives.

So, if you're getting ready to buy your first property, keep reading. Here are five things real estate experts want you to know before putting money down.

1. Get Pre-Approved

The homebuying experience can be exciting, and getting pre-approved is essential if you want to increase your chances of success. Pre-approval makes your offer stand out from the rest, which can mean the difference between having your offer accepted or not.

A pre-approval can be done through mortgage lenders, typically free of charge. Your income, credit score, and savings are all used to determine your pre-approval status.

2. Don't Go Broke

Everyone wants to buy their dream home, and for most Americans, this means a more expensive property with great amenities. However, the experts recommend against spending all your money on a house.

If you want the banks to refrain from repossessing your home, you must ensure you can afford the monthly repayments. Instead, earmark a comfortable of your income to your home-buying budget.

3. Save for Your Down Payment

As a first-time home buyer, one of the most significant advantages you can give yourself when buying real estate is to save for a decent down payment. The larger the down payment is, the less your monthly mortgage payments will be.

You may also have access to tax breaks, state programs, and an FHA loan. Ideally, you want to save at least 20%. This also means you'll avoid private mortgage insurance (PMI) on a conventional loan.

4. Remember Closing Costs

Aside from your down payment on your new home, you'll also need to cover closing costs to close on your mortgage loan. Your lender receives these upfront expenses in exchange for organizing certain loan services. These can include the following:

• Appraisal fees
• Attorney fees
• Escrow fees
• Discount Points
• Title insurance costs
• Pest inspection costs
• Homeowners Insurance
• Property Taxes

5. Enlist Real Estate Services

Finally, when you're a first-time home buyer, you should work with a real estate agent when buying a house. They are trained real estate experts who can help you find a home that fits your needs within your budget.

Furthermore, a real estate agent can help you decide the best offer on the property you're interested in and assist you in submitting your proposal.

Become a First-Time Home Buyer Today

Becoming a first-time home buyer is a momentous occasion in your life. Give yourself the best chance of success by following the advice listed above. Get yourself pre-approved, use a real estate agent, put down a decent down payment, and cover your closing costs, and you will increase the likelihood of landing your dream home.

Contact us today if you're looking for real estate agents who strive to exceed your expectations. Susie Martindale Group experts are waiting to help.