What should a first-time home buyer consider before making a purchase?


Quick Answer

First-time homebuyers need to consider numerous things before making a purchase, such as the mortgage payment, closing costs, down payments and sweat equity, notes Quicken Loans. There are things in addition to this that potential buyers need to keep in mind once they have a home in mind as well, such as location, upcoming building projects near the home, inspections and using a reputable Realtor.

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Full Answer

Before first-time buyers even begin to look for a home, they need to take a hard look at their finances and decided what they can afford. Once they know how much they can handle each month on a payment, they should look into pre-approval, as advised by Bankrate.com. Being pre-approved helps Realtors find homes for buyers quicker and easier. It also tells the sellers that they are guaranteed to get the sell if they accept offers from pre-approved buyers.

Sweat equity can be very important in a home. First-time buyers may be able to get more home for their money if they are will to put some work in. If potential buyers have the skills and the money to spend on upgrades or renovations, then they can resell the home for more money or get the upgrades they wanted for less money than buying a house that was already upgraded.

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