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4 Key Challenges for the First ­Time Home Buyer

4 Key Challenges for the First­ Time Home Buyer

Buying a home is something that excites every buyer. However, the whole process can also be quite stressful, specially if you’re a first ­time home buyer. Appropriate planning has to be done. At each step of the home­ buying process, you need to think carefully while abiding by the best practices. To achieve success with your dream of owning a lovely home at an affordable price, you need to gain a crystal­ clear understanding of each step that the home­ buying process is comprised of.

Most importantly, you need to become aware of the key challenges that you’ll be facing. But do you know what they are?

Well, let’s dive in.

#1. Getting Approved for a Mortgage

Everyone isn’t lucky enough to pay for their first house in cash. Even before you start searching for a home that you want in the market, you need to get pre­-approved for a mortgage. If you’re really serious about buying a home, you shouldn’t think of mortgage pre­- approval as boring. Whether you approach a real estate agent or seller, your offer is likely to get rejected if you don’t produce a pre-­approval letter from your lender. Though getting pre-­approved for a mortgage isn’t a loan commitment, it’s a pre­requisite for sellers to seriously consider your offer.

But what does a pre-­approval mean? Well, it’s a process in which your lender reviews your credit, bank statement and tax returns. Once the required documents have been verified, you’ll be given a pre­-approval letter which indicates that the loan that you need to buy a home will be approved.

#2. Finding the Right Real Estate Agent

One of the biggest challenges that you face as a first ­time home buyer is to evaluate the past performance of a real estate agent. Before you start working with an agent, you need to ensure you’ve picked the right one.

Important ways to asses an agent include ­

> Talk to their recent clients
> Seek their licensing information
> Check out their credentials
> Know their market presence/knowledge
> Look at their current listings

Always remember to asses a real estate agent in the same way as you do with other service professionals. To achieve success with the home buying process, you should be able to choose the right agent in the first place.

#3. Searching for the Perfect Home

What does your perfect home look like? Before you start the search, you should actually write your requirements down on a piece of paper. A house may have some shortcomings. But what’s important is to decide beforehand what shortcomings are important and what shortcomings don’t matter much.

Some key tips you should remember in this regard include ­

> Location is important.
> Room count matters more than room size.
> Home inspection must be done.
> Structural integrity is important.
> Extra storage space is great.

While you’re out there evaluating homes, you should also remember that most of the houses won’t be perfect. So, you should be flexible.

#4. Staying within a Budget

Buying a home is a big purchase. Among other challenges that you face as a first- time home buyer, staying within budget is the most important one. Whether you go for a brand ­new house or an existing one, you should practice discipline. If you don’t, you can easily get yourself into trouble.

Know exactly how much you’re willing to spend. Avoid bidding wars and comparing yourself to your peers. Refuse to look at homes that fall outside your budget. If you’re unable to find a home within your budget, wait for some time. It won’t be long before a house you can afford comes your way. Managing your mortgage payment every month comfortably is where your focus should be.

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