What Should First-Time Homeowners Know Before Buying?

September 12, 2023

Homeownership is the dream of most young Americans. The ability to own your land and make improvements or changes to the property are a few things that make homeownership so attractive.

However, first-time homebuyers often find themselves unprepared for the journey that is to come. 

This article will explore all the key information first-time homeowners should know before buying their first property this year. 

5 Things to Know Before Buying a Home

It’s important to arm yourself with as much knowledge as possible before starting the process of buying a home. Here are just a few things to know before buying your first home.

Understand Your Budget

Before you start house hunting, it’s crucial to have a clear understanding of your financial situation. 

Calculate your monthly income, including any stable sources of income, and deduct your monthly expenses. This will give you a rough idea of how much you can afford to allocate to a mortgage payment. 

Experts often suggest that your monthly housing costs should not exceed around 25-30% of your gross monthly income.

Get Pre-Approved for a Mortgage

Getting pre-approved by a mortgage lender is an important step in the process of buying a home. 

This involves providing financial information to a lender who will then evaluate your creditworthiness and provide you with a pre-approved loan amount. 

A pre-approval also shows sellers that you are a serious and qualified buyer and allows you to search for homes within a specified budget.

Research Neighborhoods

Take your time to research different neighborhoods that align with your preferences and priorities. 

Consider factors such as the commute time to work, proximity to schools (if you have children), safety, access to public transportation, and amenities like grocery stores, parks, and entertainment options. 

Consider Your Future Plans

Think about how your life might change in the next 5 to 10 years. 

Make sure you have answers to questions like:

  • Are you planning to start a family? 
  • Will your job situation change in the near future? 
  • How long do you plan on living in the home for?

These factors can influence the type of home you should buy. While it’s important to meet your current needs, try to find a home that can adapt to your changing circumstances.

Work with a Realtor

A qualified real estate agent can be an invaluable resource for first-time homeowners. They have access to a wide range of properties through the Multiple Listing Service (MLS), and their expertise can help you find properties that align with your criteria. 

They can also guide you through negotiations, paperwork, and legalities. Look for an agent with experience in the local market and one that has positive reviews from past clients.

Final Thoughts

By understanding your budget, obtaining a pre-approval, researching neighborhoods, considering your future plans, and working with a real estate agent, you’ll be better equipped to make informed decisions throughout the home-buying process.

Are you looking for a real estate agent in Massapequa? The Kim Holland Homes team is the #1 real estate team on Long Island. Contact us or call Kim today at 516-236-6303 to start the process of finding your dream home.