What Every Family Should Know When Buying a First Home

Posted by Rayanne on June 5th, 2021

The image source is Pexels.

The housing market is on fire. Homes are being gobbled up by buyers willing to spend beyond the property's asking value. In March of 2021, 6.1 million existing homes were sold across the U.S. What does this mean for your family as they search for their initial home? There are a few things to consider not only in this hyper-fast market but also in general. Here are some examples of what every family should know when buying a first home.

Realtors Are Your Friends

Your family wants the best deal when purchasing a home. You might get it on your own. However, it's more likely that someone will take advantage of you because you aren't aware of the market. This is why real estate brokers are your friends when your family buys a first home. They've worked with dozens, if not hundreds, of groups similar to you. They understand what you want and will walk you through everything at the start. This not only helps you get the house you want but also be ready for when you decide to sell that one.

Self-Serve Home Buying Is The Future

As of late, home buyers have started to turn to real estate websites to purchase a home. These aren't locations where you're on your own when it comes to making your first decision. Instead, they are populated with experienced realtors to help you through the process. For instance, try to find the best Greater Lehigh Valley real estate agency in your area. It allows buyers to search for homes and compare prices. Then, when they decide on the one they want to work on, they can select from specific agents to help them through the rest of the process.

You Don't Have To Buy The First One

Home initial home buyers believe their initial home has to be the first one they find that's within their budget. This isn't the case. Especially if they get a feeling inside their souls that says it's not for them. As a first-time home buyer, your family doesn't have limitations put on it. You don't have to purchase a small fixer-upper as your initial property. Like a car or another larger purchase, you need to shop around to find the house that makes you and your family feel good.

Know Your Income to Debt Ratio

You can't go into a home purchase without prior knowledge of your finances. Yes, a large sum in your bank account is favorable to real estate agents. However, if the amount of debt you have is equal or more than what's saved, then there's a good chance you won't be able to find a place. Thus, you want to review your debt-to-income ratio ahead of time. First, you should have at least double the amount of mortgage payments available. Second, examine what debts you have. You might need to pay some of these ahead of time before you decide to purchase your first home.

Buy A Home That Fits Your Needs

This goes with the topic of not purchasing the first thing available. A 900 square foot home probably won't be comfortable for your family of six. On the other hand, a 3000 square foot property might be too expensive if you're recently married. Purchase an initial home that fits your needs, or at least your needs for the next several years. In other words, don't purchase a one-bedroom home if you're thinking about having children. Make it comfortable and affordable enough to enjoy home ownership.

Final Thoughts

These are only a few things you should consider when you decide to buy your first home. Others include the distance from your workplace, available schooling and shopping, public transportation, and crime statistics. Furthermore, review the property itself to determine how much landscape work is needed. If there's a homeowners association (HOA) agreement connected to it, find out its restrictions related to renovations and other changes. Granted, there's a lot to learn when it comes to your family buying their first home. Nevertheless, what you learn at this stage will help you once you're ready to move to another location. By then, you'll have enough knowledge and skill to find a second home that you adore.