4 Vital Tips for First Time Home Buyers.

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Buying a home for the first time marks a significant milestone for many first time buyers, it is an exciting time when the couple has to move from a rented apartment into their own home. Many decisions need to be made, especially financial decisions. Many people are excited to own their first home, and it is at this time when they make decisions on impulse, choices that end up hurting their finances. Instead of enjoying the new house, they end up struggling to pay a mortgage for the rest of their lives. If you read and follow the following tips carefully, you will not fall under the same trap that first-time buyers have made while purchasing a house.

1. Save substantially for the down payment.

In the United States, you can get a mortgage of as low as 3.5% of the total cost of the house, so many first time buyers are excited to purchase a home and end up saving only 3.5% of the total cost of a mortgage, which is a big mistake. We recommend to save at least 20% of the total cost of the house plus the closing costs. Private mortgage insurance will also be on your case if you spend less than 20% of the total cost of the house. Saving 20% of the total cost of the house gives you a chance to sign a 15-year payment deal at a lower interest, no mortgage insurance which means that you have the opportunity to enjoy staying in the new home and saving thousands on interest and insurance.

2. Determine the price of the house you can afford.

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It is vital that you buy a house that you can afford. First-time buyers are ever excited about the new milestone of owning a home, and they end up purchasing an expensive house, and then paying the mortgage becomes a curse upon their lives, taking a lot from their income. Your monthly housing financing should not be more than 25% of your net salary. Buy a house that you can afford, and you will enjoy living in the house.

3. Find a realtor.

Realtors know everything around real estate. The first mistake that first time home buyers make is going to shop for a house without consulting a realtor, so they end up losing a lot of money unnecessarily and still fail to get the home of their dreams. Find a realtor, and let them advise you and take care of other relevant real estate matters.

4. Take a look at multiple homes.

Now that you have a professional realtor by your side, come up with your specifications, in terms of your preferred neighborhood, the ratings of the area, the schools, social amenities and any other thing that you may wish for your new home. Make sure that you look at many houses before coming to a conclusion. The realtor will guide you to your best choice.

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