Five Things to Know about Buying Your First Home

With mortgage rates at an incredible low, many potential home buyers are going to jump into their very first mortgage within the next few months. Buying your first home can be an exciting experience, but it can also be very disappointing if you go in without knowing what to expect. Here are five things you should expect when buying your first home.

Extra Costs
Many first-time home buyers enter into an agreement on their mortgage payments thinking they can afford the monthly bill. Unfortunately, they do not consider the extra costs associated with their mortgage. For instance, there are insurance costs to consider, maintenance, and property taxes. If you do not realize this before buying your home, you may be stretched to the limits financially trying to make the monthly payments.

Know Your Credit History
Your credit history plays a major role in getting approved for a mortgage loan and the interest rates on that loan. But if you do not know your history, you may be surprised when speaking to a lender about getting a mortgage. You may get a much higher interest rate than you expected and that's only if you get approved! Look up your credit score before applying for a mortgage so you have an idea about where you stand when it comes to getting approved.

Patience Is Important
When buying your first home, you might let the excitement get to you. This can lead to bad financial decisions because you simply don't want to wait until you find the home that is right for you. Don't be afraid to walk away from a home if it doesn't fit your budget or your family's needs. There is a home out there that you will fall in love with and you will be able to afford, too.

Get Local Help
Local real estate agents are the best place to go when buying a home. When you enlist the help of a local professional, you can learn about the area's schools and other amenities so you can be sure the home is right for you. A real estate agent can also guide you through the entire process so you make the best informed decisions.

Be Prepared to Negotiate
Negotiation works for both parties – the buyer and the seller. The seller often sets the price of the home expecting the buyer to negotiate it down. The buyer then submits an offer and the seller can either accept it or reject it. The process can take days or even weeks, but it is important to go through it to arrive at the best price for both parties. Don't be afraid to walk away from an offer if the price never matches your budget. There will be other homes that will meet your needs.

Knowing these things about buying your first home will help you prevent making rushed decisions and becoming impatient during the process. Hopefully, these tips will help you become a homeowner for the very first time!