Being a first time home buyer can be intimidating with all the steps, requirements, and tasks. No one wants to make a mistake in the process of purchasing their first property. It is important to know that you are not alone and there are actually advantages that were created and targeted to encourage new home buyers into the Real Estate market.
To get the most out of your buying experience keep reading below for tips on what you need to consider prior to buying and what to expect during the buying process.
Buying a home consists of finding the property, securing financing, submitting an offer, scheduling a home inspection before close, then closing on the purchase. It is important to note that even prior to looking for a home, getting pre-approved will direct first time home buyers to exactly what they are looking for, budget wise. Knowing your pre-approved amount will set first time home buyers ahead and save time when searching for a home to buy.
HUD, The United States Department of Housing and Urban Development, provides access to first time buyers to state programs, tax breaks, and federally backed loans, if buyers do not have the usual minimal down payment, which is 20% of the purchase price for a conventional loan. You may also qualify as a “first time buyer” if you are a member of a certain group.
Defined by HUD, first time home buyer advantages can extend to these certain groups as well:
- An individual who has not owned a principal residence for 3 years
- If you’ve owned a home but your spouse hasn’t then you can purchase a place together as first time home buyers.
- Single parent who owned a home with a former spouse while married
- Someone who has owned a home not permanently affixed to a permanent foundation with applicable regulations.
- Owning a property that was not in compliance with state, local, or model building codes – and is not responsible or further affiliated for less than the cost of the infrastructure.
The Buying Process:
- Find a home
- Consider your financing options, then secure financing OR get pre-approved prior to finding a home and allow that to set up what type of home you will be interested in with your budget
- Make an offer on the home
- Have the home inspected
- Close or move on (If something comes up in the home inspection that you are not willing to take on, you may chose to pass on the purchase of the home.)
Buying a home as a first time home buyer is exciting! Make sure to explore all options that you have and resources available to you.