{"id":3546,"date":"2022-12-15T18:37:34","date_gmt":"2022-12-15T18:37:34","guid":{"rendered":"https:\/\/apartmentsource.com\/blog\/?p=3546"},"modified":"2023-02-28T17:36:17","modified_gmt":"2023-02-28T17:36:17","slug":"9-useful-tips-for-first-time-home-buyers","status":"publish","type":"post","link":"https:\/\/apartmentsource.com\/blog\/9-useful-tips-for-first-time-home-buyers\/","title":{"rendered":"9 Useful Tips for First-Time Home Buyers"},"content":{"rendered":"

Buying a home is a major life milestone that many people hope and try to achieve. If you don\u2019t know what to do, though, or you\u2019re feeling way too far out of your depth, then this dream can seem all but impossible.<\/span><\/p>\n

Most first-time home buyers have a lot of questions and feel at a loss. Without insider knowledge or past experience, how do you know that you\u2019re heading in the right direction? How do you know someone isn\u2019t taking advantage of you?<\/span><\/p>\n

To help your home buying journey go as smoothly as possible and to give you a bit more confidence during the endeavor, here are nine useful tips for any first-time home buyer.<\/span><\/p>\n

Mortgage Tips<\/strong><\/p>\n

#1 Prepare for Extra Costs<\/strong><\/p>\n

Most loans will have some form of application or processing fee when you\u2019re accepted. In addition to this, they\u2019ll also likely have closing costs and either Private Mortgage Insurance (PMI) or Mortgage insurance premium (MPI) requirements. If you aren\u2019t prepared for these costs ahead of time, they\u2019ll catch you off guard and likely leave you feeling like the lender is trying to take advantage of you.<\/span><\/p>\n

#2 Shop Around<\/strong><\/p>\n

One of the best ways to make sure you get the best deal on a mortgage is by shopping around. Never commit to the first lender you contact without first looking around to see what else there is on the market. Once you have a better idea of what you\u2019re eligible for, you\u2019ll be able to make a more informed decision and even negotiate better terms where possible.<\/span><\/p>\n

While you\u2019re shopping around for different lenders, also keep in mind different types of loans that you may be eligible for. There\u2019s the traditional conventional mortgage, but there are also <\/span>FHA loans<\/span><\/a>, USDA loans, VA loans. Neither of the government loans (USDA and VA) require a down payment, a major bonus for anyone who qualifies.<\/span><\/p>\n

#3 Save For a Down Payment<\/strong><\/p>\n

These days, a 20% down payment is no longer the rule. Many people buy a home with as little as 3% down and some mortgage programs don\u2019t require a down payment at all! However, if you are able to afford a 20% down payment, then you\u2019ll often be better off in the long run.\u00a0<\/span><\/p>\n

Both conventional and FHA loans require insurance until you reach 20% equity. By paying a higher down payment, you\u2019ll be able to avoid this extra cost. Even if you don\u2019t make a 20% down payment but you can make a 15% one, you\u2019ll be that much closer to paying off your home and getting rid of MIP or PMI payments.<\/span><\/p>\n

#4 Get a Pre-approval Letter<\/strong><\/p>\n

Before you even start shopping for a home, make sure you have a pre-approval letter in hand. Once you start contacting sellers, they\u2019ll want to see proof that you can actually buy their home and a pre-approval letter will be just what they\u2019re looking for.<\/span><\/p>\n

You don\u2019t have to commit to the lender that provides you the pre-approval letter. You\u2019re free to change your mind and choose a different lender. The letter is just used to reassure sellers that you\u2019re able to get a loan that will cover the price of the house. In the eyes of the seller, it makes you less likely to fall through on a sale.<\/span><\/p>\n

House Shopping Tips<\/strong><\/p>\n

\"\"<\/p>\n

#5 Visit the Neighborhood<\/strong><\/p>\n

If possible, visit the neighborhood of any prospective home before <\/span>making an offer<\/span><\/a>. While the house may look perfect in the photos, you never know what you\u2019ll encounter once you\u2019re actually there. From dirty streets to rude or loud neighbors, make sure you know what you\u2019re getting into before you can\u2019t back out.<\/span><\/p>\n

#6 Stick to Your Budget<\/strong><\/p>\n

When it comes to buying a house, it can be easy to convince yourself going slightly over budget isn\u2019t that big of a problem. However, this can quickly get out of hand and soon enough, you\u2019re looking at houses that cost $50,000 or even $100,000 more than you budgeted for.<\/span><\/p>\n

Your budget is there for a reason. It lets you know what you can and can\u2019t afford. If you don\u2019t stick to it and you let yourself start investigating houses that cost way more, then you\u2019ll be sorry in the end.<\/span><\/p>\n

Another reason it\u2019s vital to stick to your budget is for loan approval. If you\u2019re looking at houses that cost $450,000 but you\u2019re only approved for $380,000, then you can\u2019t move forward with the house you want. To avoid being disappointed or having a sale fall through, make sure you stick to your budget, even when you\u2019re just shopping around.<\/span><\/p>\n

Home Buying Tips<\/span><\/p>\n

#7 Hire a Home Inspector<\/strong><\/p>\n

Many first-time home buyers don\u2019t see why they should spend extra money on a home inspector if they can go themselves. However, unless you have a very wide range of job experience and have worked in plumbing, electrical, and construction, you won\u2019t do a good enough job.<\/span><\/p>\n

Home inspectors are experts in all three fields and will be able to spot a hazard or violation quickly. Paying for a <\/span>home inspection<\/span><\/a> may actually end up saving you money in the long run as major problems are brought to your attention.<\/span><\/p>\n

If you have specific concerns, then you may want to hire an additional inspector. Home inspectors will look at a number of different things, but they won\u2019t investigate pests, sewage systems, chimneys, and more.<\/span><\/p>\n

#9 Negotiate<\/strong><\/p>\n

Timid first-time home buyers will have trouble with this one, but negotiating is a vital part of the home buying process. From negotiating with mortgage lenders for a better rate to asking the seller to reduce the price due to a certain repair or problem that was noticed, negotiating is just part of the process.\u00a0<\/span><\/p>\n

As a first-time buyer, you\u2019re likely going to assume that when a lender or seller tells you something, it\u2019s true. While this is the case many times, you can often leave with a better deal if you\u2019re willing to talk it out.<\/span><\/p>\n

Your Perfect Home is Just Around the Corner<\/strong><\/p>\n

\"\"<\/p>\n

Now that you have these nine useful tips in mind, it\u2019s time to go find your perfect home! Don\u2019t be surprised if it takes you a few days or even a few weeks. Buying a home is a big decision so you want to be sure the one you get is perfect for you.<\/span><\/p>\n

Did you know The Apartment Source specializes in first time home buyers? Call our office to get in touch with one of our Brokers! <\/strong><\/p>\n

\ud83d\udcf2 773.404.9900<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Buying a home is a major life milestone that many people hope and try to achieve. If you don\u2019t know what to do, though, or you\u2019re feeling way too far out of your depth, then this dream can seem all but impossible. Most first-time home buyers have a lot of questions and feel at a loss. Without insider knowledge or past experience, how do you know that you\u2019re heading in the right direction? How do you know someone isn\u2019t taking advantage of you? To help your home buying journey go as smoothly as possible and to give you a bit […]<\/p>\n","protected":false},"author":12,"featured_media":3596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_links_to":"","_links_to_target":""},"categories":[188],"tags":[],"class_list":["post-3546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-chicago-housing-market"],"yoast_head":"\n9 Useful Tips for First-Time Home Buyers - The Apartment Source<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/apartmentsource.com\/blog\/9-useful-tips-for-first-time-home-buyers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"9 Useful Tips for First-Time Home Buyers - The Apartment Source\" \/>\n<meta property=\"og:description\" content=\"Buying a home is a major life milestone that many people hope and try to achieve. If you don\u2019t know what to do, though, or you\u2019re feeling way too far out of your depth, then this dream can seem all but impossible. Most first-time home buyers have a lot of questions and feel at a loss. Without insider knowledge or past experience, how do you know that you\u2019re heading in the right direction? How do you know someone isn\u2019t taking advantage of you? 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