The home buying process can be rather daunting. This is especially the case if you are a first-time homebuyer and have never done it before. There are several steps along the way and it requires a significant sum of money to purchase a home. This process is less intimidating if you are a clear understanding of how the numbers work. Continue reading and discover a few financial tips for the first-time homebuyer.
Budget for closing costs
Many first-time homebuyers are unaware that in addition to the downpayment, you need to account for closing costs. Many homebuyers do not budget for closing costs and come to realize that the home they were significantly more expensive than they had initially thought. In most cases, closing costs generally fall between 2% and 5% of the total loan amount. When calculating your budget, you want to factor in your expected closing costs.
Budget for expenses after move-in
If you have never purchased a home before you may be unaware, it can be to furnish the inside of a home. Depending on your situation, you may have to buy furniture, fixtures, kitchen appliances, fresh coats of paints, and other home improvements.
Negotiate where you can
There is generally a considerable amount of negotiating when it comes to the home buying process. With this, do not be afraid to negotiate whenever you can. It may result in significant savings for you as a buyer. For example, many buyers request the seller to cover the closing costs or to pay for certain repairs on the home.
