Buying a home for the very first time can be a thrill, although there’s no doubt it can be overwhelming. This is especially true when you realize the median price is approaching $315,000 and homes are being snapped up in only two or three weeks.

 

Save for a 20% Down Payment

Very few people can afford to pay cash for a home, so if you can’t do that you need to save enough to make at least a 20% down payment. This way you can avoid having to buy private mortgage insurance (PMI). This is how the mortgage company protects itself in the event you stop making payments and they have to foreclose on your home.

 

Obtain Preapproval for a Loan

Before you even start looking, get yourself pre-qualified for a home loan and then take it a step further by obtaining a preapproval letter from your lender. When you’ve already been preapproved sellers regard you as a serious buyer. This gives you an advantage over others who may be competing with you for the same home.

 

Look Online for Homes in Your Price Range

Go online and find homes that appeal to you in your price range and email them to your Realtor, so that he/she has a good idea of the type of homes you like. They can then go to the multiple listing service (MLS) to find other homes in the areas you prefer that you may also like.

Your Realtor Can Help You Research Neighborhoods

Before narrowing your choices down, make sure you ask your Realtor about the schools in the area and what the crime rate is. The last thing you want to do is fall in love with a property only to learn that the schools are poorly rated, and the neighborhood may not be as safe as you would like.

Determine how long it would take you to commute to and from work to see if that works for you. Scout the neighborhood on different days and times to observe traffic and noise levels. While there, have a look around to see if residents are enjoying being outdoors or whether the neighborhood seems more like a ghost town.

Go to Open Houses

Once you’ve chosen the neighborhoods you prefer, drive over on weekends to see if any Realtors are holding Open Houses. Attend a few even if the homes do not fit your criteria. This way you can talk to people and get a feel for the neighborhood. When you finally decide on a house, you’ll have a good idea of how it compares to others in the area.

 

Make the Best Offer You Can Within Your Budget

Once you find a home you want within your budget, you need to step up and make an offer. You’ve already been preapproved for a loan, but most first-time buyers have no idea how much to offer. Don’t worry, this is why you hired an experienced real estate agent. So, turn to your Realtor for advice when it comes to making an offer.

 

Closing Process

Once your offer has been accepted by the seller, the closing process begins. Your Realtor will guide you through everything, but it is up to you to keep up with whatever is asked of you. Closings take 43 days on average, which means you should have enough time to get everything done on schedule.