How to Buy Your First Home

August 16, 2021

Are you currently in the market for your first home? If you’re in the midst of browsing potential neighborhoods, creating home wish lists and shopping around for top Home Insurance options, you may be curious to learn about the top tips for first-time home buyers. Purchasing your first home is a major financial and personal milestone, and it’s important to go into the process prepared. Here’s how you can navigate this process like an old pro.

Research Top Neighborhoods and Consider Making a Must-Have List

Before you start shopping for furniture or booking moving trucks, you’ll need to pinpoint your desired neighborhoods and decide what exactly you’re looking for. The clearer a must-have list you compile ahead of time, the easier and more targeted your search will be. As you choose your ideal neighborhood, be sure to consider a range of factors that could potentially affect your overall quality of life. For instance, you may want to consider a given neighborhood’s:

  • Amenities
  • Urban or rural surroundings
  • Public schools
  • Safety
  • Architectural style

Define a Clear Budget and Start Saving Up

Having a clear-cut, well-defined budget from the outset can simplify your home-buying process, save you time and avoid financial struggles down the road. After all, you don’t want to accidentally buy an unaffordable home if your budget can’t accommodate the mortgage and all the associated costs. When determining how much house you think you’ll be able to afford, it’s important to think realistically about your financial limits. Take into consideration key parameters such as:

  • Your income
  • Your total amount of savings and cash cushion
  • Your credit
  • Your current debt levels

Once you’ve calculated the amount you can afford to spend, it’s time to start saving up. The earlier you begin saving for your home fund, the better. Keep in mind that your home purchase will entail a number of costs, including:

  • Down payment
  • Mortgage insurance
  • Homeowners’ insurance
  • Closing costs
  • Moving expenses
  • Real estate agent fees

Consider Different Mortgage Options and Look for Affordable Homes

Finally, shop your options before settling for a certain house or for a certain mortgage. For instance, if you like a certain neighborhood but can’t afford the homes currently on the market there, you can shop around for similar neighborhoods. Be sure to also weigh the pros and cons of different mortgage types, depending on your financial situation. Some of the most common types of mortgage loans include the following.

  • Federal Housing Administration, or FHA, loans
  • Conventional home mortgages
  • USDA mortgage loans
  • Veterans Affairs, or VA, loans

Whether you’re in the early phases of searching for your very first home or you’ve already identified your dream home and secured thorough Home Insurance, knowing how to smoothly navigate the home purchasing process can make your experience as a first-time homebuyer simpler and easier. By zooming in on your ideal neighborhoods, setting up a clear budget, saving money early and shopping around, you can buy your first home stress-free.

About Brooks, Todd & McNeil

Since 1839, the independent agents at Brooks, Todd & McNeil have been pleased to offer our community the best and most affordable policies from a variety of providers. Our dedicated facilitators are ready to put their 75 years of combined experience to work on your claims. To learn more about our products and services, contact us today at (800) 448-4567.