Buying a new home has always been one of the most pivotal moments in the lives of most people. For first home owners, the process can be a combination of excitement and anxiety. First home buyers programs are designed to make the process of buying your first home less stressful, and more enjoyable.
When it comes to choosing a new home, the process of finding the perfect home, submitting an offer, and dealing with the closing can be exhausting. However, the more time you put into finding the ideal first home, the more certain you will be that you made the best decision. After all, committing to a 20 or 30-year mortgage, and tens of thousands of dollars in payments, is no small matter.
Given the excitement that goes along with buying a first home, it is important that first home savers not allow their emotions to take over. In order to make the right buying decision, and avoid home buyer’s regret, CNN Money offers a few helpful tips that will help first home savers keep their emotions in check:
- If you are uncertain about your ability to commit to living in one place for several years, rethink your decision. Trying to sell your home early on is a sure-fire way to lose money, especially during a down market.
- Check your credit. The better your credit the better your chances of securing a home loan at the lowest possible rate.
- Look at homes you can actually afford. If the cost of a new luxury home is more than 2.5% of your annual income, walk away. The debt could bury you.
- Be certain that you are satisfied with the neighborhood and school district. If you ever decide to sell, the type of neighborhood and quality of the school district is crucial. Even if neither matters to you, it may matter to prospective buyers.
- Seek pre-approval before beginning your search. If you’ve been pre-approved for a loan before hand, it will take a huge load off. Plus, you will be aware of your financial possibilities and limits.
- Hire a reputable home inspector. If possible, avoid inspectors recommended by the realtor, or any party involved with the sale. Only your own inspector is guaranteed to look out for your best interests.
There are countless additional tips to help first home savers make the right decision. However, the most important tip of all is to put logic ahead of emotion, and never rush into a a decision.