First time home buyers 7 important things to know

Purchasing your first home is an exciting milestone, but it can also be a daunting process filled with unfamiliar terms and decisions. To help you navigate this journey, here are seven important things to know:

1. **Understand Your Budget**: Before you start house hunting, it's crucial to know how much you can afford. This includes not just the purchase price, but also closing costs, property taxes, insurance, and ongoing maintenance expenses. Use online calculators or consult with a financial advisor to get a clear picture of your budget.

2. **Get Pre-Approved for a Mortgage**: A mortgage pre-approval gives you a realistic idea of how much you can borrow and shows sellers that you're a serious buyer. It involves a lender reviewing your financial situation and credit history to determine the loan amount you're eligible for.

3. **Research Neighborhoods**: The location of your new home is just as important as the home itself. Consider factors like proximity to work, schools, amenities, safety, and future development plans. Visit neighborhoods at different times of day to get a feel for the area.

4. **Hire a Real Estate Agent**: A knowledgeable real estate agent can be an invaluable resource in your home buying process. They can help you find properties that meet your criteria, negotiate offers, and guide you through the legal paperwork.

5. **Know Your Must-Haves vs. Nice-to-Haves**: Make a list of features that are non-negotiable (like the number of bedrooms or proximity to public transport) versus those that are desirable but not essential (like a swimming pool or gourmet kitchen). This will help you stay focused during your search.

6. **Get a Home Inspection**: Once you've found a potential home, hire a professional inspector to evaluate its condition. They can identify any structural issues or repairs needed, which could affect your decision or bargaining power.

7. **Be Prepared for Closing Costs**: Closing costs typically range from 2% to 5% of the home's purchase price and include fees for things like appraisals, title insurance, and legal services. Make sure you have enough funds set aside to cover these expenses.

By keeping these seven points in mind, you'll be better prepared to make informed decisions and avoid common pitfalls on your path to homeownership. Happy house hunting!