First-time homebuyer? Navigate your way with this guide.
Taking the first step on the property ladder is likely to be one of the biggest decisions you’ll make. From the outside, the home-buying process is a minefield of red tape, legal knots, and a cascade of money leaving your pocket. In short, it can be overwhelming. However, if you break it down into stages, things are not as scary as they seem. To check out the stages that every first-time homebuyer must know, read on.
What to Consider First
Determine what you what. While it’s good to maintain flexibility in what you want, aim to have a set idea of the type of house you want to purchase. Narrow down the property type (townhouse, condo, multi-family building, etc.) and list the features that are essential for you.
Calculate how much house you can afford. Before you start shopping, it’s good to get an idea of how much you can realistically afford. Even if a lender grants you a mortgage of more than what you thought, it’s safe to stick to what you want to pay out each month.
Save up. Even if you qualify for a sizeable mortgage, there will be considerable upfront costs and closing costs. So that you can afford these costs easily, it’s a good idea to have a significant amount of savings.
The Buying Process
Find a home. Make sure to take advantage of all the available options for finding homes on the market, including using your real estate agent. If you’re on a budget, consider looking at homes whose full potential has yet to be realized.
Look to your IRA. For the purposes of the IRA distributions, a first-time home buyer is anyone who hasn’t owned a present interest in primary residence mobile homes, houseboats, and stock for the previous two years. You can withdraw a certain amount to help pay for your first home.
Make an offer and close on a house. If you’re able to work out a deal with the seller, and if a home inspection didn’t reveal any significant problems, you should be ready to close on a house! Bring on the paperwork.
Secure homeowners insurance. Many lenders will require you to purchase homeowners insurance to protect the property. Be sure to do your research and shop around for the right deal for your new abode.
The professionals at Humble & Davenport Insurance believe that your home should be protected at the right price for your budget. To get started on securing a policy, call us for the right homeowners insurance policy in Renton, Washington.