8 Hacks to Buying Your First Home: Expert Tips for First-Time Buyers

What is your dream? Travelling world...getting a family...which one? After you finish your travel, you will want to return to a place which you call home. Whatever you do with your family, you want to be with them in a place that you call home. So most people would say their dream, 'I want to settle down and buy a house...'. Buying your first home is one of the most exciting and nerve-wracking experiences of your life. So, what are the hacks to buying your first home you could use to make the process easier?

 

If you want to figure out the process, you may need to go through a sea of paperwork. Scared! Chill buddy... I can make it easier for you. I am going to share eight expert hacks that can help you navigate the home-buying process with confidence.

1. Stick to Your Budget, but first set it

I often see that the very first mistake first-time homebuyers make is that they don't set a realistic budget from the start. Before you start to browse listings, it's crucial to have a clear understanding of what you can afford—and, just as important, what you can’t.

 

The first thing you can do is figure out your whole monthly expenses and then remove them from your monthly income. This can give you a basic idea of how much room you have for a mortgage payment. If I were you, I would consider all of the expenditures associated with owning a property, including:

 

• Mortgage Payment
• Property taxes
• Homeowners Insurance
• Utilities
• Maintenance and repairs

 

A simple budget breakdown could look like this:

 

 

How much can you pay per month? Simple. These all depend on your earnings. The more you earn, the more you can pay in a month.

 

When you stick to your budget and avoid the temptation to stretch your finances, you will be able to set yourself up for long-term success.

2. Get Pre-Approved for a Mortgage

The next step is to get a Pre-approval for a mortgage once you know how much you can pay per month. Any expert would say the same thing, 'Pre-approval is a game-changer', and it will let you know exactly how much you can borrow as a loan. It also shows sellers that you’re a buyer with serious intentions, which could give you an edge in a competitive market.

 

If you want pre-approval, you will need to submit some essential financial documents like tax returns, pay stubs, and bank statements. It’s different from pre-qualification, which is just an estimate based on your self-reported financial info.

 

With pre-approval in hand, you’ll be able to:

 

• Set a realistic home price range
• Move quickly when you discover the right home
• Avoid wasting time examining homes that are out of your reach

 

For better approval, you can read our blog Top Tips: Getting Better Mortgage Pre Approval.

3. You Should Know These Things About Mortgage

There are a lot of mortgage options available out there, and choosing the right one can save you thousands of dollars over time. I am sharing some mortgage options you should know:

 

• Conventional Loans are standard loans typically requiring a 20% down payment. However, some lenders propose programs that are as low as 3% down.
• FHA Loans could be a good option if you are a first-time homebuyer. The Federal Housing Administration insures these loans and allows loaners to lower down payments (as low as 3.5%). If you want to buy a home with FHA loan, you can read this complete guide.
• VA Loans, this loan could be eligible for you if you’re a veteran or active-duty service member, which typically requires no down payment and has competitive interest rates.

 

This is a long-term game, my friend. As your guide here, buddy, I would recommend that you take your time to compare interest rates, down payment requirements, and terms from multiple lenders. This is one of the essential hacks to buying your first home. If you use this hack properly, it may save you thousands.

 

You may find our mortgage calculator helpful to estimate your monthly payments and figure out which option fits your budget. Mortgage Calculator.

4. Your Team Should Be Strong. Work With An Agent

Sometimes, it might be tempting for you and stressful to try to navigate the home-buying process alone. It could be beneficial for you if you decide to start working with a real estate agent to remove all the stress you are bearing. Possibly, it might be one of the best decisions you can make. If you want to get the best deal, I would recommend you work with a skilled agent. Trust me, a skilled agent can guide you through the complexities of the market, help you find the best deals, and negotiate on your behalf.

 

Choosing an agent is easier than you think; you must look for someone who specializes in first-time homebuyers and knows the local market well. They must be able to:

 

• Help you find homes within your budget
• Set up home tours you like
• Guide you through the paperwork and contracts
• Help you with negotiations and closing

 

Having an expert on your side can help you avoid costly mistakes and ease the stress of the process. I am not kidding! You can reach the team leader of DreamX.Homes Ben Wourms if you are looking to buy or sell a home in Ohio, especially in Cincinnati. He is a top-rated agent; you can check his reviews.

 

If you are still not confident, then you can read this Full Guide To Choose Right Real Estate Agents Cincinnati or anywhere in the USA.

 

Or, if you want to go solo, then you can download this guide where 100% Free Guide Reveals On How To Avoid These 3 Very Costly Mistakes When Buying A Home Without Agent To Save $Thousands.

5. Are You Skipping The Home Inspection?

 

This is one of the hacks to buying your first home.

It’s easy to fall in love with a house, but no matter how perfect it looks to you, you should not skip the home inspection. A home inspection can reveal hidden issues, everything from a leaky roof to faulty wiring, that could cost you a fortune down the line.

 

What happens in the inspection? During the inspection, a licensed professional will assess the home’s condition, looking for problems in the roof, foundation, plumbing, electrical system, and more. Why don't you be present there by yourself when this happens! You can see what is happening in real-time.

 

You will get a report that will give you a clearer picture of the home’s actual condition, and it can help you make informed decisions.

 

In some cases, if the inspection uncovers serious issues for the home, you may be able to negotiate to either lower the price or request repairs before closing with the seller. It’s an essential measure that can save you a lot of money and headaches.

6. You Should Think Beyond the Listing Price

The first puzzle you will need to solve is the listing price of a home. But this puzzle of many you will face in your home search journey. Don’t forget to consider additional costs that can significantly impact your monthly expenses and long-term finances when you set a budget for your new home.

 

Some additional costs you should bring into consideration:

 

• You Should Not Forget Property Taxes: This may vary by different locations and can increase over time if you are not careful about it now. Cincinnati's property taxes change according to the home's location, the school district, and other local factors. Let me give you an example, Cincinnati’s effective property tax rate is around 2.12% for owner-occupied homes. That means for every $100,000 in home value, you might pay over $2,000 annually in taxes, and this amount can increase over time due to changes in assessment values.
• Homeowners Association Fees (HOA): If the home is in a neighbourhood with an HOA, these fees can add up quickly. Depending on the neighbourhood, HOA fees can range from modest to substantial, and they’re an ongoing expense to keep in mind.
• Maintenance and Repairs: Even if the house looks perfect, you’ll eventually need to replace appliances, fix plumbing, or tackle other repairs. It's wise to budget for maintenance, which can vary based on the age and condition of the home.

 

Don’t let sticker shock take you by surprise. Look at the whole picture and make sure that you can comfortably afford the total cost of owning a home.

7. Research the Neighborhood

When buying your first home, the property itself isn’t the only thing you need to consider. The neighbourhood you pick will play a big role in your long-term happiness, so don’t overlook it.

 

It would help if you considered a few factors to find potential neighbourhoods:

 

• Security & Safety: To be sure the neighbourhood is safe to live in, you should review local crime data. You can use this website spotcrime.com to check crime report.
• Schools: The quality of the local schools might influence the resale value of your house. And if you have children, this is one option you should consider very seriously.
• Public Transportation: Proximity to public transportation or major roads can impact your daily commute.
• Amenities: Look for nearby parks, grocery stores, restaurants, and other amenities you’ll use regularly.
• Future Growth: Investigate any planned developments or improvements in the area. A neighbourhood on the rise could offer better long-term value.

 

Spending time in the neighbourhood at different times of the day may help you get a feel for the environment. You can walk around and try to talk to local residents and check if it fits your lifestyle. It can give you an idea of whether it fits your lifestyle or not.

 

So, it can help you if you take the time to find a neighbourhood that suits your needs and fits your future plans.

8. Every Buyer Should Have A Plan For The Future

The excitement about buying a home can get you caught despite the fact that the home is not perfect for you. Let's think of the long term. A home is one of the biggest investments you’ll make, so you’ll want to ensure it meets your future needs.

 

Here are some of the things I would like to recommend you to consider for future:

 

• Space for Growth: Will this home accommodate your needs in five or ten years? For example, if you plan to have children or need a home office, you should look for extra rooms or space to grow.
• Resale Value: Even if you plan to stay in the home for a while, I would recommend that you think about its potential resale value. A home that’s easy to sell down the road can provide you with financial flexibility later on.
• Location Stability: Is the area likely to maintain or increase in value? You can check on the development plan for that area in the future. You can research local market trends to make sure the home will hold its value over time.

 

While no one can predict the future, it’s helpful to think ahead and make sure your home will suit your lifestyle now and in the years to come.

Final Touch

I totally feel you. This journey of buying your home is filled with both excitement and challenges, but with these eight expert hacks, you’ll be well on your way to making smart, informed decisions.

 

These hacks for buying your first home are crucial to ensure your success as a first-time buyer, from setting a budget to buying your first home, getting pre-approved for a mortgage to learn how much you can afford, or carefully researching your neighbourhood.

 

Remember, this process doesn’t have to be stressful. When you have the right mindset and preparation, you’ll find a home that fits both your needs and long-term goals. So please don't rush to buy a home, take your time to plan carefully, and don’t be afraid to ask for help when you need it.