How to Choose Your First Home in the U.S.: Tips for First-Time Buyers

There’s a big market with lots of factors at play and more regulation every step of the way. After all, your house is probably the biggest purchase you will ever make, so it’s completely natural to feel a mix of anticipation and dread. But there is a way to reduce that nervousness and make the process go faster: by knowing what’s next.

So many things to think about, from budgeting to finding the perfect location for your future home, and both of these are surely going to have a major impact on your quality of life in the years ahead. + next post By working with a trusted source, like LBC Mortgage, you can receive sound funding advice and get the facts. This article is for U.S. first-time home buyers specifically. With easy-to-understand explanations and actionable insights, it guides you to make decisions with confidence, ones that support your future dream life.

Setting a Realistic Budget 

The first step to buying a home is understanding how much you can afford. And while many first-time buyers begin their search by perusing listings online, lacking a budget can lead to nothing but frustration. To those with this, a smart move is to sit down and look at your monthly income, work out what’s coming in and going out, and how much you feel is affordable for the home loan repayments every month. The majority of financial planners advise that you spend no more than 28-30% of your gross monthly income on housing costs.

Once you have figured out your range, you need pre-approval. A lender scrutinizes your financial information —your credit score, income, and debt-to-income ratio — and issues you a letter affirming how much it is willing to lend. This letter is important when making offers, as you have just made the sellers consider you as a serious buyer. It also keeps you from wasting time on houses that are out of your price range.

Choosing the Right Location for Your Lifestyle

Where you decide to buy a home can matter as much, if not more, than the home itself. First-time homebuyers in particular often find themselves trying to choose between one extra bedroom and upgraded finishes, but it’s important to remember that where you live will make a big difference in your daily routine. Consider Hotel Points, commuting times, area schools, safety and how close you are to amenities should all be factors in your decision-making process.

If you work in a city, you could save yourself hours of traffic time per week if you live closer to your job — even if the house costs slightly more. School districts routinely dictate where families choose to move, and the influence is two-fold, as school district rankings add value to property. Younger viewers may prefer walkable neighborhoods where restaurants, gyms, and entertainment options are at their fingertips. Research the following when finding a neighborhood to live in:

• Commuting and access to public transportation
• School scores and distance from child care centers
• Prevalence of crime and general neighborhood safety
• Close to parks, shops, and community centers within walking distance
• The long-term trend in property values and upcoming projects

Don’t overlook long-term growth, either. An area with new businesses, slated infrastructure, or a growing population can boost your home’s value over time. Speak to residents, and visit at different times of day; also, research the trend in property prices or rents for this area.

Understanding Property Types

Various categories of land can be found in the USA, and these differences should be understood before making a purchase. What type are you looking for? A Single-Family Home. When you own a single-family home, you have privacy and more ability to create your environment that suits your family, but also the added responsibility of maintenance. Condo: On the other hand, condos often have common amenities and monthly association fees (e.g., community gyms or pools).

It usually boils down to lifestyle and budget for new buyers. If you love to tinker on home renovation projects and value independence, a single-family house is just right for you. Conversely, if you travel often or hate mowing the lawn, a condo might be right for you. Some people are also looking at multiplexes, such as duplexes, so they can rent out a unit and offset the costs of the mortgage.

Carefully consider size as well. Splurging to buy a bigger house can make your budget feel too tight, too quickly, as utility bills and maintenance costs add up. On the flip side, if your home has become too small for you, you may be ready for another move more quickly than you’d like.

You might also think in terms of resale. Paint also frets, but no one can personalize that finish like they can with so many new homes with some personal finishes and touches: Appliances that you choose instead of are given, Layouts that an owner can mold, Sufficient storage, and Amenities such as a garage or private outdoor space. All will help the value proposition of a home. When you align what you buy with the type of property that fits your lifestyle and budget, dealing with homeowner reality and making mortgage payments will be much more manageable.