5 Things To Know as a First-time Homebuyer

Dated: November 22 2023

Calling all future homeowners! Are you ready to dive into the home-buying pool? Great! Let's get you geared up with everything you need to know, from mortgages to finding the right real estate agent. It's a big step, but with a little know-how, you'll be making an offer in no time.

1) Figuring Out Your Budget

First things first, homes are expensive, and you're probably going to need a mortgage. The big question is: how much house can you afford? This depends on your income and some other stuff. You can get a rough idea by using the home affordability calculator on realtor.com. Generally, your monthly house payment shouldn't be more than 28% of your gross monthly income. So, if you're making $6,000 a month, keep your mortgage under $1,680. But hey, these online calculators are just a starting point. For a more accurate number, you should get mortgage pre-approval from a lender. They'll check your credit history and other things to tell you exactly how much you qualify for. Also, sellers like buyers who have pre-approval; it shows you're serious and have the money. And don't forget, there's the option of an FHA loan, which is easier to qualify for but comes with its own set of rules.

2) Choosing the Right Real Estate Agent

Buying a home isn't like clicking the 'Buy' button online. There's a lot of paperwork, and things like hidden termite problems or nearby nuclear plants you might not know about. Plus, there's a lot of money at stake. You need a real estate agent to guide you through all this. Find someone who knows the area well. They can help you figure out what's a good deal and what's not. Mark Moffatt, an agent from McLean, VA, says finding the right agent is crucial. You can start your search on realtor.com/realestateagents. Remember to interview a few before you make your choice, because once you pick one, you're pretty much in a committed relationship with them.

3) Understanding There's No 'Perfect' Home

It's your first home, and we get it, you want it to be just right. But real estate is about compromise. You've got to balance price, size, and location, and you'll probably only get two out of those three exactly how you want them. Maybe you'll get a great deal on a big house, but it's not in the best neighborhood. Or a nice house in a great spot, but the down payment is more than you hoped. Remember, like dating, looking for a "perfect" home might mean missing out on a "great" one. Find a place you can live with, grow into, and make your own.

4) Doing Your Homework

Found a home you love? Awesome! But hold your horses before you sign on the dotted line. Make sure you do your homework and add some contingencies to your contract. This means you can back out if something goes wrong. The most common ones are a home inspection contingency (to fix things like a weak foundation or leaky roof) and a financing contingency (in case the bank doesn't approve your loan). There's also the appraisal contingency, in case the bank thinks the house is worth less than your offer.

5) Tax Credit Options

While the first-time home buyer tax credit is a thing of the past, there are still some tax breaks you should know about. The mortgage interest deduction is especially helpful for new mortgages. If you've paid for discount points on your mortgage, those are deductible too. And some places offer a mortgage credit certification, which lets you claim a tax credit for part of the mortgage interest you paid. Check with your Realtor and local government to see if you qualify.

So there you go! Keep these tips in mind, and you'll be well on your way to finding and buying your first home. Remember, it's a journey and we are here to walk alongside you on your homebuying journey. Contact us today:

Graham Team Real Estate • (702) 930-9551 • Team@grahamteamnv.com

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3007 W Horizon Ridge Pkwy, Ste. 210, Henderson, NV 89052