3 Guiding Questions for First-Time Homebuyers
When you are a first-time homebuyer, It’s natural to have a lot of questions. Where to look, how much to save, as well as needs and wants all need to be addressed early on in the process. With so much to consider, getting started can feel overwhelming but when you sit down and make a plan while working with a realtor you trust, you will find yourself in the home of your dreams in no time.
Planning ahead is essential for first-time homebuyers. While you have likely been saving for some time, a down payment is not the only aspect that you need to prepare for. With so many variables going into your purchase, you will want to have a clear vision of what you want from your new home. Here are three guiding questions for first-time homebuyers.
1. As a First-Time Homebuyer, What Can I Afford?
The answer to this question for first-time homebuyers is multifaceted. The first piece they will want to consider is how much they are prepared to offer for a down payment. In 2021, according to the National Association of Realtors, the average down payment for first-time homebuyers was 7%. For reference, this comes out to $21,000 for a $300,000 home. Expensive but still attainable with all things considered. From there, it is imperative that you figure out how much you can afford to pay for a monthly mortgage. With such an important decision on the horizon, you are going to want to be sure that you can comfortably afford your mortgage, as well as your other recurring expenses. Remember, this is your first home. You don’t need to stay in it forever. Maintaining your financial security in both the long and short terms is immensely important. Lastly, make sure you have some funds set aside for closing costs. They will be due along with your closing costs and will range from 2%-5% of your home’s purchase price.
2. As a First-Time Homebuyer, What Do I Want?
You may be tempted to start here, but your financial outlook will determine how many of your “wants” you’ll get out of your first home. But that doesn’t mean you shouldn’t take the time to think about what it should look like and what area you want to live in. This is a question for first-time homebuyers that often trips them up. Don’t get too distracted by what your dream home would have but instead think of your first home as a building block. You will learn alot about home ownership in this space, so don’t try to bite off more than you can chew immediately. Instead, carefully consider how much space you need to live at the current moment and then try to envision how much space you may need in five years. If you are able to find a home that meets your current needs while giving your family some space to grow in it as well, you should consider your first home purchase a success.
3. As a First-Time Homebuyer, Where Do I Want to Live?
Whether or not you can purchase in your desired location is entirely up to your personal financial situation. If you can afford to get into your favorite neighborhood with your first home, that’s amazing! If you are not able to afford this, there is nothing to worry about. This is a question that first-time homebuyers can spin their wheels on. Working with a realtor you trust will go a long way to helping you find some (and sometimes all) of the amenities and features of your dream neighborhood in an area you can afford. They will be able to match all of those wants in places you may not have even thought to consider.
Find Your Future Home
With so many great options, you can rely on me to always prioritize your goals, whether that’s boating on Lake Minnetonka or landing in the best area for families in the Twin Cities, I have you covered. I’m proud to specialize in assisting sellers and buyers in the west metro and I’m confident that I can get you into your dream home. Let’s get you home. Get in touch with me to get started.