The thought of finally having your own space to enjoy, watching your children grow, and a place where you can retire comfortably can make you feel warm and fuzzy. But, buying a house requires significant money. The last thing you want is to make a bad choice and lose everything you’ve worked hard for.
Therefore, the process of investing in real estate can be emotionally taxing. At the same time, when buying their first property, one in every three Americans cries while half of the American buyers feel anxious. So, you’re not alone. With a bit of faith in your abilities, research, and guidance, you can buy the house of your dreams.
1. Learn About the Buying Process
Research can help you curb most of your anxiety since it removes uncertainty. You should write down all the information you’re looking for. These can include the kind of house you want, how much savings you will need and when should you buy it? The internet is an excellent place to get an overview of what you’re looking for. Still, a real estate agent can fill you in with the relevant details.
Agencies like The Realty Medics have the expertise you’re looking for; these agents will guide you in narrowing down your first home. These professionals can also handle your anxiety and walk you through when you get cold feet. You should also take notes during the conversation and ask for research material to build your knowledge.
2. Attend a First-Time Homebuyers’ Class
Like birthing classes or a first-time music class, a first-time home buyer’s class aims to educate you. A real estate agent can connect you to these classes, or you can look for a suitable one on eHome America. These classes will cost you roughly $70 to $120, but they are well worth your money.
Attending a first-time buyer class is also an excellent way to curtail your anxiety and meet with other new homeowners who may mirror your thought process. You will learn different concepts like getting a mortgage and the impact a credit score has on buying a house. The more information you have, the more confident you will be in your skills.
3. Make Sure You Have all the Relevant Documents
Double-checking and ensuring you have all the necessary documents you need will tone down your panic. These include your recent paycheck stubs, valid picture ID, bank statements, and two years’ worth of tax returns. You will also need a record of your assets, credit report, and credit score. If you have a current score of 620 or higher, you’re in the green.
However, if your credit score is lagging, don’t be afraid. You can easily bring it up. All you need to do is pay your bills on time and keep your credit cards open and at low.
4. Figure Out How Much You Can Afford
You need to know how much your wallet will allow you to spend. Websites like NerdWallet’s home have an affordability calculator for you to use. You can set limitations to your calculation by providing information on your income, the debt, the down payments you will need to make, your credit score, and your neighborhood value.
So, instead of playing the guessing game, you will have a concrete figure in front of you. If you don’t have enough in your bank, don’t fret, there are options for you. These include:
- A Down Payment Assistance Program. Consider this program if you’re aiming to pay the total price of your new house but don’t have enough to make all the down payments. Each state and city has its assistance program details, which you will need to Google to find out. Some states also offer first-time homebuyer programs. These combine low-interest-rate mortgages with down payment assistance and closing costs to give you a discounted price.
- Learn The Mortgage Options. A variety of mortgages await you, which can help you make necessary payments for your house. Here’s what you need to know:
1. FHA Loans. A Federal Housing Administration (FHA) is a home mortgage insured by the government, the bank, or the lender. It is extremely popular with first-time buyers and designed to help low to moderate-income families. If you opt for this option, you will need to pay as low as 3.5% in down payments.
2. Conventional Mortgage. You can get it through credit unions, mortgage companies, or banks. You can get a conventional loan and pay as little as 3% on the down payment. Most traditional loans also have fixed interest rates, so you can pay the money off your house in a series of payments without worrying about the price increase.
3. USDA Loan. The USDA loan is a zero-down payment mortgage program for rural homebuyers. It is primarily for those who cannot get a traditional mortgage.
4. VA Loans. These loans are no down payment mortgage guaranteed by the department of veterans affairs for current and veteran military service members.
5. Think About The Type Of House You Want
After dealing with all the necessary logistics that will enable you to purchase your house, you need to start picturing your dream house. You will need to look into neighborhoods that fall into your budget and lifestyle. For instance, a condominium is ideal for a single-family but offers you less privacy. If you go downtown, you will find luxurious options but won’t be able to keep up with the costs.
A suburban house may give you the space and privacy you want but may not fall in your income bracket. So, with a real estate agent, you need to plan, browse local house listings and sort them into a list. This will make the work easier for you since you won’t have to look through numerous search results and get overwhelmed. Instead, focus on the houses that you shortlisted.
6. Attend Open Houses
Open houses are a great way to familiarize yourself with a house you wish to buy. You will get to study the house, make notes about the flaws, and gauge how you genuinely feel about the property. If you picked through pictures alone, you might regret your choice. Over 60% of millennials in America hate the way they bought their first house; make sure that doesn’t happen to you.
Ask the homeowners all relevant questions about the property, including safety hazards, history of the house, and benefits of purchasing the house. This will make you more confident about the place you wish to buy. Some houses also offer 3D home tours with a drone. This allows you to see the property in greater detail, including the complete exterior. If you are still unsure, hire a private inspector to survey the house for you.
As you look into buying your first property, you may feel scared. Paying for a house requires a significant amount of money, and you want to make sure you get it right on the first try. A real estate agent can help you tremendously. These professionals will both console you and guide you, which can help you get some stability while making your choice.
You may look into attending a first-time buyer’s class to get a better insight into what’s in store for you. Ensure you stack all the relevant documents in one place and look at your finances to sort out payment. You can also curb your anxiety by narrowing down the houses you want and checking them in person. Once you have successfully abided by your fears, it’s time to make a purchase.