What A First Time Home Buyer Needs
Buying your first home is exciting and a little scary. Embarking on this quest takes time, resources, and lots of research. It can also create a stressful situation, so you should be prepared. A first time home buyer’s checklist should include a good real estate agent, a trusted mortgage lender and an expert insurance agency. If you have never bought a house before and are considering doing so, here are a few tips.
Have a Budget in Mind
Step number one in buying your first home is establishing a budget. You must know how much you can afford to pay for a house and what your monthly payments will be. Start off by knowing what the monthly income will be that contributes to the house payment. Put together a list of monthly expenses. Most experts recommend that you spend no more than 30% of your income on housing. This is a good guide toward determining what you can afford to spend. In determining these numbers remember that there are additional costs to owning a home over and above the mortgage payment. Some of these are maintenance, utilities, insurance. It’s a good idea to have cash on hand that can be used toward a down payment.
Find a Real Estate Agent
A trusted real estate agent can be a lifesaver, and their advice is invaluable. Don’t go with the first agent you talk to, shop around. Feeling comfortable with your real estate agent is important so you should interview more than one. Recommendations from family members or good friends can help. Your realtor will have the experience to answer all your questions and offer advice as well.
Your real estate agent can also recommend a mortgage lender. This doesn’t mean you shouldn’t do a little homework on your own. There are different types of mortgage loans and you want to find the one that suits your needs best. Be sure to get a credit report and have it on hand when talking to mortgage lenders. Once you have settled on a mortgage lender, try to get pre-approved for a loan. Showing a letter of pre-approval will indicate to sellers that you are serious about buying.
Another area in which that trusted real estate agent can help is buying first time home buyer homeowners insurance. You’ll need to talk to insurance agents, but the realtor can recommend reliable ones. Again, you need to do some research on your own. Find out what coverages you will need, and what levels of protection you can afford.
Find Your Ideal Home
When you are comfortable with your real estate agent, mortgage lender and insurance agent, find your dream house. This is the fun part, but it can be an arduous task. Don’t rush, and check out the neighborhood as well as the house. Find out about schools, recreational facilities, shopping, police and fire departments, etc. You and your real estate agent will work well together and you will soon be enjoying home ownership.
Homeowner’s Insurance Is A Key Element
It is important to have trusted agents working for you in the process of buying a home for the first time. When it comes to insurance, Bogle Agency Insurance has unmatched experience and expertise. We’ve been around for 100 years helping people in New Jersey insure their most valuable asset, their house. When you have decided to buy a house, give us a call at (201) 939-1076 and make an appointment to meet and discuss your first time home buyer’s homeowners insurance requirements. Let us guide you toward the best protection for your new home.