If you’re millennial and you’re reading this, it’s an interesting fact that your generation now constitutes 66% of first-time homebuyers and 34% ofhomebuyers as a whole.
If you’ve fully embraced adulating by deciding to buy a house, read on—
Step 1: Understand what you’re getting into
First, ask yourself over and over – are you truly ready to be a homeowner and take on the responsibilities it entails?
When you own a home you’re definitely going to take on a lot more responsibilities than when you lived in an apartment. But you will also have added benefits like tax advantages, a rise in equity, and most importantly, more freedom to do as you please with the property.
Step 2: Examine your finances, set a budget, and stick to it
Don’t leave anything out when examining your finances. In addition to your monthly income, consider your student loan debt and property costs.
Factor in the hidden and long-term costs of buying a home. Aside from the mortgage, you have to pay monthly utility costs, moving costs, maintenance, and property taxes.
After you’ve gotten your financial ducks in a row, find a lender. Ask them to preapprove you for a mortgage. Based on your financial standing, a lender will let you know how much money you can borrow. This way, you will not be bogged down by worry that the house of your dreams may or may not be within your budget.
A preapproval also tells the home seller that you are credit worthy and that your offer should be taken seriously.
Remember that once your budget is set, you have to stick to it. Spending more can cause your expenses to balloon and turn your finances into a mess in the future.
Step 3: Figure out what you really want
Buying a home is a long-term investment so you have to make sure you find one that will complement your goals.
If you’re thinking of starting a family, then a single-family residence in a good school district is perfect. If you want pets, consider places with big yards or condos with amenities for pets.
Step 4: Shop around and be patient
Shopping around isn’t limited to the actual residence. To get the best deal possible in all aspects of the home buying process, you have to research the best neighborhoods, as well as on reputable lenders.
Check out your financial options with multiple lenders so you can get the lowest interest rate possible. It might be a lot of work but your future self will thank you for it.
Don’t succumb to the fear of missing out and remember that finding the perfect home takes time, work, and a lot of patience.
Step 5: Hire a real estate agent
YouTube videos and internet research can only get you so far. If you really want to be a successful homebuyer, you have to ask for professional help.
Having a real estate agent guide you through the new and complicated process of buying a home will cause you less stress and help you make better-informed decisions.
Hire an agent you can trust – check out reviews and testimonials. Find out what clients say about the agent’s service. As a first-time homebuyer, choose an agent who has gotten props for their level of service and responsiveness.
Our team here at Formula Realty is young, innovative, and represent some of the top real estate agents New Jersey has to offer. We understand the challenges you face as a first-time homebuyer. Give us a call at (732) 858-5822 or (848) 391-8370. You can also send us an email at mybrokermax(at)gmail(dotted)com.