Buying a house, especially for the first time, can be a very daunting and overwhelming task.
Written by Northwest Mortgage
Published on Tue, Dec 14, 2021, Last Updated on Tue, Dec 14, 2021
Besides, you can make mistakes that might be hard to come back from.
The only way you can make the entire experience less daunting and much more effective is with preplanning, research, and with the right knowledge. When you make informed decisions, the results are (almost) always great.
If you don’t know where to start, follow this 4-step guide for first-time home buyers, and soon enough, you’ll have a house of your own!
1. Find Out if You Can Pay the Mortgage
You need to be very self-aware of your financial situation before buying a house. Take a look at your monthly spending and your income. When all’s said and done, are you left with enough money every month to pay for your mortgage and still have enough for emergencies and your daily expenses? Take into account every small and big expense, including food, car, utilities, maintenance, bill payments, unexpected expenditure, debts, clothing, etc.
Once you have a clear budget, allocated expenditure, and a steady income to finance it all, then you can safely go into the home buying process knowing you’ll be comfortable paying your mortgage.
2. Build Your Savings
Even if you are taking out a mortgage loan, you’ll still need lots of savings to help you through it. The trick is to start saving early. You can employ help from several resources to help you save money, such as automatic transfers to your saving account, setting aside all bonuses and tax refunds, etc. Having enough in savings can help you pay the down payment, all the finalizing costs, and the numerous other expenses of moving into a new house.
3. Don’t Leave Your Bank Account Empty
If your bank account is going to empty up after you make the purchase and move in, don’t do it! There are always unexpected expenses that can blindside you in life, and the last thing you want is to come up empty-handed. Always make sure to have money in savings for those random crises. There’s no need to hurry. Postpone buying the house for a few more months until you have sufficient savings to keep you financially secure.
4. Take Your Time
When the agent starts showing you houses, you can feel rushed to make a decision, particularly if you feel bad for dragging them from house to house – you don’t! Take your time and do your research; see as many houses as you can to have several options before you make a decision. This is a big purchase. Don’t rush it or you may find yourself regretting it. You’re the one who has to live with the purchase, not the real estate agent. As always, take your time in narrowing down the houses you like the best while also considering other factors such as location, neighborhood, condition of the house, need for repairs, etc. All of this will take time, so feel free to take it. Do not rush the decision.
The Final Word
When buying the house for the first time, choosing the right kind of mortgage to finance it and choosing an option that is most comfortable for you are what matters most. Northwest Mortgage offers a variety of mortgages and rates so that every home buyer can have their top pick so they can buy their dream house.