When you are ready to buy your first home, there are many steps that you need to take before signing the dotted line. You will need to do plenty of research upfront, ensure that your credit and finances are in good order, and work with a real estate agent who will keep your best interests in mind. Continue reading for a list of things first-time homebuyers wish they’d been told.
1. Importance of location
It is easy to fall in love with one of the houses for sale in Miami Beach that has all of the features you thought would be perfect. You will want to explore the location of the home as well. Check out how long your commute to work would be, and don’t forget to factor in the commute to take kids to school if you have any. See how close any amenities are that you need easy access to, like a grocery store and pharmacy. Stop in the neighborhood and appraise the noise levels. Are there any industries around that make a lot of noise, or is the home on a high-traffic roadway? Additionally, you will want to drive through the neighborhood at night. What is the lighting like? Are there street lights that light up the whole neighborhood? These are all seemingly small details that will make a big difference once you actually move into the area.
2. Additional expenses
Many expenses go into purchasing a home that goes beyond just the monthly mortgage payment. You will want to research all of these additional expenses to ensure that you are fully financially prepared to take on the investment of owning your first home. Consider all of the small costs that your landlord may have been paying for you at your rental. These could include maintenance costs, yard care, and even some monthly bills like water, sewer, and garbage pickup. You will soon be responsible for all of these costs to upkeep your new home. Additionally, as an owner of a home, you will be responsible for holding homeowner’s insurance and taxes. Real estate tax on houses in Miami Beach reset with each new owner, which means you may have to account for higher taxes than the previous owner paid.
3. Homebuyer education
There is a lot of research to be done and knowledge to be gained before you start looking at houses for sale in Miami Beach. There are many real estate and financial classes and workshops you can participate in before beginning the process of buying your first home. In order to make sure that you know as much as you can about the home buying process, you may consider taking advantage of one or more of these opportunities. Some of the topics covered in these classes and workshops include becoming mortgage-ready, basic financial education, and special courses for veterans and military-connected individuals.
4. Mortgage pre-approval
A big step that you can take to ensure that your home offer is taken seriously is to receive mortgage pre-approval. You can get a mortgage pre-approval through your selected lender. This preapproval will provide the homeowner with documentation that the lender is ready to finance your loan. While this step benefits the homeowner, it will also benefit you while you are looking for a home. By talking to a lender before starting your home search, you will have a better idea of how much the lender will actually be willing to provide to you. This will make the search for a home easier because it will ensure that you are looking only at homes that fall within your budget.
5. Build your savings and credit
One thing that first-time homebuyers should know before even beginning to look for a home is that it is never too early to start saving a down payment and building credit. When you find the perfect home, you want to be prepared to make the purchase. You will need at least 10-20% of the price of the home ready to place as a down payment. The sooner you start building your savings, the sooner you will have the funds that you need for the down payment on your dream home.
Additionally, you will want to start building your credit. Start as soon as possible building your credit and keeping it at a high score. When you get closer to buying a home, make sure you don’t make any decisions that will have a large impact on your credit score. Some of these big decisions would be taking out a new line of credit, or not having any credit at all. Choosing to buy a car or open a new credit card could have a negative impact on your credit score too close to your home purchase. While you want to make sure you use credit cards wisely, you won’t want to ignore credit altogether. You will want to make sure that you keep your credit cards paid down so that they have a positive impact on your credit score.
When you are ready to start looking for your first home to buy, you want to work with a Miami Beach real estate agent that has decades of experience and an exceptional track record of success. Ivan Ramirez and Monica Sarmiento have more than two decades of sales experience in the United States real estate market. They will provide you with the highest professional standards and will work with you throughout the home buying process to help you find the perfect home to fit your family and lifestyle. Reach out to Ivan and Monica directly when you are ready to start the search for your first home.
