Saturday, May 15, 2021

Tips for Affording a Better Home for Your First Purchase

Buying a home for the first time is one of the most financially difficult processes you're ever likely to go through. If you have things lined up in advance, though, you should be able to afford a home you truly love. 

Here are four tips for affording a better home on your first purchase.

Clear out Old Debts First

Before you buy a home, it's a good idea to clear out some of your other debts. Car loans, credit cards, and student loans will all put a monthly drain on your finances, limiting the amount you can afford to put toward a house payment. 

If you retire these other debts, though, you will be able to pay a higher monthly amount for a better property.

Save up a Significant Amount for Your Down Payment

Assuming you have good credit and a decent income, the price of the house you can buy is mostly limited by the amount you're able to put down. 

As a result, it's a good idea to build up a large down payment fund before you begin seriously looking at houses. If you have to, you can use all of this fund to buy a more expensive home. 

If you find something you like at a lower price, you can instead use the extra money for improvements or to reduce the amount you have to borrow when you buy.

Have an Experienced Real Estate Agent in Your Corner

When it comes to getting the best price on a house, few things are as important as having a good real estate agent. An experienced agent can help you put together a reasonable offer on the house and determine what the seller will likely accept. 

Working with an agent who knows your local market will make for a smooth buying process and the best possible final price.

Don't Skip on the Home Inspection

In addition to making sure the home, you're buying is safe and up to date, a home inspection is an invaluable tool for price negotiations. 
If an inspector finds previously unidentified problems, you may be able to negotiate for a lower price that reflects the true condition of the property.

As with your agent, it's important to choose an experienced and reputable home inspection contractor.

With these four tips, you should be able to afford a great property. A bit of planning and preparation goes a long way, so going into the purchase process with everything lined up will give you the best chance of snagging a great price on your future home.

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