Purchasing your first home is a momentous achievement and has long been considered a staple of the American dream. There are several benefits to owning your own home: saving money on monthly rent, building your credit, and tax benefits are just a few.
However, while many incentives are offered to first-time homebuyers, buying a home is still a considerable commitment. With all of the steps, tasks, and expenses required, the home buying process can seem daunting, especially to those new to the real estate market.
If you’re considering purchasing your first home and are unsure where to start, here are a few tips to help simplify the process and ensure you get the most out of your purchase.
Audit Your Finances
Purchasing a home is an expensive undertaking. Not only do you have to consider the upfront costs, such as your down payment and closing costs, but also your monthly mortgage payment and the additional ongoing costs of maintaining your home.
Check to see how much money you have saved; lenders typically prefer you to have a few months of savings stowed away in case of emergencies. Then, take account of your monthly spending, including the costs of utilities, food, car payments and maintenance, student loans, and more. Doing this will help you calculate just how much money you will be able to allocate for your mortgage payment.
Choose a Home That Best Fits Your Needs
Cost is not the only thing you need to keep in mind when searching for your first home. Before committing to a property, it’s also important to consider whether it aligns with your needs, goals, and plans. For example, if you don’t want to perform much upkeep or lawn maintenance, a townhome or condominium might be a better choice for you than a traditional single-family house. Likewise, if you want to start a family soon, make sure you choose a home that allows you enough space.
Consult a Trusted Lender
Before you begin searching for your dream home, it is essential to understand your financing options. A lender can help give you an idea of how much you will be allowed to borrow to cover the expense of your first home and can help determine which mortgage loan options are the right fit for you.
At Coastal Custom Mortgage, our team of experienced lenders is well-equipped to help you as you embark on your first homebuying journey. Whether you are looking for mortgage prequalification, preapproval, or are just looking to explore your options, contact Coastal Custom Mortgage today.