Gen Y’s guide to first-time home buying

For many, purchasing a house is such a decision that is taken in a lifetime. And for millennials with large amount of student debt, sometimes, buying a home is just next to impossible. However, with lender becoming a bit more flexible, purchasing a home can be like a dream come true for many millennials. You can certainly step ahead and start looking for properties and prices in real-estate websites. But before doing that you need to make sure if you are really serious about it. You need to ponder on a few things first. Would you be able to make the required downpayment? How is your credit? Are you still lagging behind on your student loan? Are you going to stay in that area for a considerable amount of time? Are you ready to take responsibility of your home maintenance? These are, of course, the preliminary questions. There are more to come and you need to remain prepared with answers. However, if you have no issues with the ones being said, and ready to take the flight, check out our quick guide for first-time home buyers.

Things to Do in Advance

Set a budget: The very first thing that needs to be taken care of before going for the hunt is setting your budget. Get all your finances in one place and see how much you can afford paying for a home. Make sure you include closing costs, property taxes, home insurance and other relevant costs while chalking down the final figure. Check our your lending option: If you are unable to roll in money, you’d strictly need a mortgage lender then. Take your time and research to list the potential lenders. You’d require to be pre-approved before you begin your property search. Get organized: Before you approach the lender, get all your finances in one place - account statements, pay stubs, tax returns, everything. These documents will help the lender determine if you are eligible for a mortgage or not. And if yes, how much you’ll be able to borrow.

Things to Do During the Hunt

Hire a real estate agent: Nowadays, with so many free online resources, property hunting has become easier like never before. This causes many avoid a real estate agent. Think again. Since the homebuying process is so labyrinthine, a real estate agent will be just indispensable to you. Consider the location: Where are you going to stay is a very important thing to ponder upon. While considering the locality and neighborhood is important, you’ll also need to keep in mind the issue of reselling as well. Check if hospitals, schools, markets are in vicinity of the location because these add to the resale value. Location is a key component that determines your home insurance rates as well. Fixer upper vs. money pit: One blunder most first-time home buyers make is taking on too much at a fixed upper. Though an older home can save you big up front, it can end up being a giant money pit. Look for such a home where you can yourself do the fixes and repairments.

Things to Do After your Proposal is Accepted

Get a home inspection done: One your mortgage is accepted, get the home inspected. Make sure you take this chapter seriously and get the things done by an expert. It’s only a professional can tell you the problems with the property and the repairs needed to be done. Once you get the information, you’ll be able to negotiate a better deal with the seller. Get the property appraised: Next, get the home appraised. Most lenders ask for this. Keep in mind that there are time contingencies in the contract with both inspection and appraisal. So make a note of appraisal and inspection deadlines so that you can act properly. Insure your home: Insuring your home would be there at the last step but it’s one of the most important things for you newly made investment. Home insurance policies are required by most lenders just because it keeps your investment safe. Make sure you shop around before concluding on a policy. Compare coverage, premiums, deductible, and other important factors until you find the one that meets your needs and comes within your budget.