4 Things You Need to Know Before Buying Your First Home

Buying a house is an exciting step in your life, but it can also be a lot to think about, especially if you’ve never done it before. You want to make sure you find the best neighborhood for your needs, whether it is schools or being in walking distance to the local train station. Not to mention applying for a mortgage and making sure you have the financial where with all to afford the exact house you want. Try not to let the stress of being a first time buyer overwhelm you, since you still want to enjoy the process as much as you can.

1. Decorating Your New Abode

When searching for your new home, it is always important that you can envision your furniture inside. Will your Sealy mattress fit? Where will all those clothes go? If you are looking to upgrade your Sealy mattress or other bedroom furniture, City Mattress is the place to look since they were the first brick and mortar specialty mattress retailer and know how to help you have a good night’s sleep. You can give your bedroom a whole new makeover once you’ve moved in, with an updated bed frame and headboard too. It is important to measure out your new rooms before purchasing any item so that you are sure it will fit in the new house. Also, try to remember that delivery can take a few weeks, so have a backup plan. You don’t want to be camping out on the floor.

2. Saving For The Down Payment

Before buying a home, you will want to make sure that you have saved enough for your down payment on the new home and for any closing costs. It does not matter if you are planning to apply for a mortgage from a reputable lender, you will still need to show that you have some cash saved up. Today, many lenders ask that you have at least five percent of the total cost of your home saved up, which is on the lower side since most buyers assume they will need 20 percent. Usually, a larger deposit is required. Your goal should be to save more than the minimum required by a mortgage lender. Remember, the more you pay upfront, the less you will owe as a homeowner on your home loan in the long run. It is also important to note that closing costs can be around five percent of your total house price, and you have to pay this at the time of the purchase.

3. Knowing Your Debt

Debt is such an ugly word, but in order to purchase that dream home, it is good to have it all in order. For most people, buying a home means they will be taking on new debt. It may be a good idea to take a look over the debt you already owe so you have a good idea of what you will be paying. Debt can be anything from student loans to car or credit card loans. If you have too much debt it can affect your credit score, and you may not be approved by your lender. This is why you want to be on top of all of it so you can plan accordingly. If you take the time to run the numbers yourself, you will know exactly what will be expected of you each month on top of your monthly mortgage payment so you don’t end up falling behind and finding yourself facing foreclosure.

4. Knowing When To Fold

When buying your first home, you will probably have to compromise. Weigh the pros and cons and see what you’re willing to live without. If you have a particular price point you are trying to stay in, you may not get all the amenities you were hoping for. The same goes for the family looking for a sound school system. Most of the time, you will have to pay more for the home. It is important to be emotionally prepared to have to change the idea of the perfect home. There are always some deal-breakers that home buyers are not willing to budge on, and that is okay. Nevertheless, know you will probably have to make a few concessions during the buying process.