Buying your first home is an exciting experience, but it can be nerve-wracking as well. While you’re looking, do your best to reduce your expenditures so you can build up your savings. Even if you don’t need it for a down payment, you’ll never regret having more savings put aside.
When shopping for your first house, keep an eye out for fixer-uppers. While a new home with all the bells and whistles may be eye-catching, you will be missing out on the best deals out there. If you find a house that needs work but seems like a good deal, make sure to make the contract contingent upon inspection.
Walk through the house with a general contractor to serve as inspector and be prepared to pay them for their time even if you choose not to buy. Understand that a full-size house will be both easier to repair and provide you with a better rate of return than a tiny house or mobile house.
Where to Start?
The first repairs you will need to make will be to the plumbing and electrical. If there are problems with the roof, you will need to address that immediately as well. Cosmetic repairs can wait, though it’s a good ideal to replace floor coverings before you move, particularly in the bedrooms to avoid a lot of moving headaches later. If you have time, try to paint before you move in and before you replace the floor coverings. If you don’t have time, this can be done later but will take some care.
A more expensive home will take longer to pay off. If possible, you can lower your payment terms with a 15-year mortgage. The payments may be a little larger, but your interest payout will be much lower. A type of software called an affordability calculator can help you estimate the cost of purchasing a home. Using tools like this can help you to determine if a home is within your price range.
Neighborhood is Key
Your neighborhood can define how safe you are long-term, the quality of your child’s school and your ability to enjoy a walk without dealing with too much traffic. Carefully study your options before buying and seek out a small fixer-upper in a great neighborhood. You’ll likely recoup any investments you make in the house and enjoy a great place to live while you do the work.
Your first home should be a joy. It should also be a place where you can build skills and try some new things. To reduce your debt burden, seek out a place that needs work that you can handle.
Every new homeowner should have homeowner’s insurance to protect their investment. Contact us for a quote today!