Are you recently married and embarking on your first homebuying journey? Congratulations! This is an exciting chapter in your life that you’ll never forget. As thrilling and happy as this time is, it comes with a lot of big decisions.
Here at BlueWest Properties, we know that purchasing your first home can be overwhelming. We’re here to help! Check out our top five first-time home buyer tips for newlyweds.
5 First-Time Home Buyer Tips for Newlyweds
Buying a home with your new spouse is an incredibly special experience. But it’s no secret that house searching and making major financial decisions can be stressful – that’s why we’re here to help!
1. Make Sure You're 100% Ready To Buy a Home
Owning a home is a huge commitment (almost as big as committing to spending the rest of your life with someone). If you’re deciding whether renting a property or purchasing one is right for you, consider these significant points:
- You need to be financially ready. When you buy a house, you need money for a down payment (a 20% down payment is widely considered the ideal down payment amount for most loan types and lenders).
- You also need to make enough money to afford your mortgage payment each month and other bills (insurance, taxes, HOA fees, etc.).
- As a homeowner, you’ll be responsible for anything that goes wrong with the home (unless you’re part of an HOA, which will take care of certain maintenance issues)
2. Create a Budget and Save for a Down Payment
If you decide you are ready to purchase a house, you’ll need to create your budget and start saving for your down payment.
According to Investopedia.com, a good way to determine your budget is by using the “28% Rule.” This means that your mortgage shouldn’t be more than 28% of your gross monthly income. While this rule isn't hard and fast, it is an excellent guideline for first-time home buyers. You can also work with your broker or agent to get serious about a reasonable budget for you and your spouse.
After you decide on a budget, you can start saving for your down payment, which can be anywhere from 3% to 20% of the home’s value (depending on your lender’s requirements). You can save up this money all on your home, look into getting a loan, or apply for assistance programs.
3. Get Pre-Approved for a Mortgage
Before you start looking at homes, getting pre-approved for a mortgage is crucial. A pre-approval letter from a lender shows sellers that you are a serious buyer and can afford the house. Here's why this step is essential:
- Pre-approval helps you understand how much you can borrow, narrowing your home search to properties within your budget.
- Sellers are more likely to accept an offer from a pre-approved buyer since it indicates financial stability and readiness to proceed with the purchase.
- Knowing your loan amount in advance saves you time by focusing on homes you can afford, avoiding the disappointment of falling in love with a property out of your price range.
4. Research and Prioritize Your Needs and Wants
When you and your spouse start looking for your first home, it’s essential to have a clear understanding of what you need versus what you want. This will help you make informed decisions and stay focused during your house hunt. Here are our best tips for determining your non-negotiables and your wants during house hunting:
- List Your Must-Haves: These are non-negotiable features that you need in your home, such as the number of bedrooms, bathrooms, location, and proximity to work or schools.
- Identify Your Wants: These features would be nice to have but aren’t deal-breakers, such as a large backyard, updated kitchen, or extra space for a home office.
- Be Ready to Compromise: Understand that it might be challenging to find a home that ticks every box. Prioritize your must-haves and be flexible with your wants. This approach will help you find a home that meets your needs and fits within your budget.
5. Find the Right Real Estate Agent for You
First-time home buying is a rollercoaster, but you don’t have to do it alone. We recommend finding a real estate agent who has experience with newlywed clients.
Your real estate agent will be your point of contact throughout the home-buying process. Some of the most common things they can assist you with include:
- Counseling on market trends and conditions, prices, and mortgages
- Curating a list of properties that include all your key features
- Facilitating negotiations between buyers and sellers
- Developing a competitive market price by comparing properties
- Reviewing purchase contracts to ensure terms are met
- And so much more!
Start Your New Chapter with BlueWest Properties
At BlueWest Properties, our agents love helping first-time home buyers find a place they love and can start their new chapter. Our team is dedicated to making the home-buying process smooth and enjoyable, ensuring you feel confident every step of the way. To learn more about what it's like working with us, contact us online.
