It is recommended that you get credit pre-approval before you start to actually hunt for your first home. This translates to a loan commitment from a mortgage company that will spell out the dollar amount they are willing to lend you. The amount is based on your current income level, in addition to other financial obligations you may have. Generally speaking, you can expect to receive about two and a half times your income. Conservative individuals will not want to "max out" a loan amount, as it often costs more to run a home than one originally assumes.
Time for the Hunt!
After you have your credit pre-approval and know what realistic purchasing options await you, you are ready to house hunt! This is an exciting time where you can walk through houses, and perhaps discover more about what you do and don't want in a home. Think about location. Is the home close enough to shopping, movies, schools, major roadways? Is it too close to the above? What is the neighborhood like? Would you feel comfortable there? How is the school system? Even if children are the furthest thing from your mind, an excellent school system means a better resale value at some point in the future.
While going through the process of buying your first home, it can be easy to fall in love with a home for the wrong reasons. A beautifully decorated and furnished home may appear quaint and charming, but imagine the spaces you see without the current homeowner's belongings in them. Some couples are stunned when they actually walk into that empty house on move-in day. Rooms change a great deal as belongings disappear.
A handyman's special may seem like a great way to get the most house for your money, but have you realistically calculated the cost of repairs? For those who are handy and love to do it themselves, the handyman's special may provide the best deal, but be realistic about the qualities that make the house a "fixer-upper".
Making Sure It's a Sound Deal
Once you find the ideal home, make an offer of a specified amount to buy it. If it is accepted, you are ready for the home buying process! A home inspection should focus on structural safety, foundation, pests, and cosmetics (is wear and tear reasonable?). You should receive a detailed report that clearly states whether there are problems that need to be fixed before a sound deal can be made. This inspection will be followed by another inspection closer to your actual move in. This will ensure that no further damage has occurred and will give you the chance to inspect the home without furniture (perhaps covering carpet stains), hanging pictures (is there wall damage?), etc.
Ensure that every aspect of your home buying agreement is in writing. This is especially important to remember when buying your first house, as verbal agreements are meaningless when it comes to legally protecting yourself.
The concluding stage in buying your first home is the closing. This is the true finalization of the home buying experience. You will sit down with the seller (or a representative), lawyers (some states require lawyers, others do not) and agents, transfer the money, and sign the papers. When you leave you will have the keys to your new home and your exciting future!