Stepping into the process of home buying for the first time can be quite overwhelming. After all, this is likely the biggest investment you have ever made and there are many steps to the process that you may not have realized. Since you don't have experience in buying a home, there are plenty of things that you may overlook, as well. Here are three things to keep in mind:
The Long-Term or Re-Sale:
When you are looking at homes within your budget, you want to either think long-term or re-sale. If you know that you don't want to be in your first home for the long-term, then it's important to determine whether or not the home is going to potentially be profitable when you sell it in the future. If there are too many repairs that you don't believe are going to be done within a short time span, then it's probably not best for re-sale. However, if you plan on staying for the long-term, you want to be sure that it will be suitable for your future needs. For example, if you plan on having kids, then having enough space to expand is important.
There are many more expenses to consider when purchasing a home aside from the price of the home itself. For example, you want to consider the interest rate. If the lender is giving you a high-interest rate, then you need to use this number to determine your monthly mortgage cost. If the home is set at a price that you can barely afford and then you add interest on top of that, it's definitely not the smartest purchase to make. You also have to consider the cost of monthly electricity bills, insurance, and maintenance costs, as well.
A Decent Down Payment:
The more you can put on a down payment the better. This is because it can significantly lower your monthly mortgage cost and you will pay less interest on the home over time. If you can't afford the home that you want, it doesn't hurt to wait to purchase a home so that you can save more for a down payment that will lower your monthly expenses so you can afford the home that you want.
When you don't overlook these three things when purchasing your first home, your experience as a first time home buyer can definitely be a more successful one.