It probably doesn’t shock you to hear that a home is one of the biggest investments you’ll make in your life. In fact, it’s right up there with paying for your own or a loved one’s post-secondary education.
Because it’s such an important financial decision, you need to make sure you understand what to look for when buying your first home, as well as how to plan before you ever attend an open house.
We’ve amassed some smart tips for buying a first home in Pennsylvania in an easy-to-use check-off format.
First-Time Home Buyer Checklist For 2023
- Find a trustworthy real estate professional. Ask friends, family and co-workers for recommendations if you don’t already know a real estate expert. Although you don’t absolutely need a realtor to buy a home, as a first-time home buyer, it’s much easier to have a professional on your side.
- Figure out how much of a down payment you can make. A 20 percent down payment gives you a lower mortgage loan amount, but it can be tough to come up with that much cash at once. As a first-time home buyer in PA, you’re likely eligible for many discounts. Talk to a realtor to find out how you can put as little as five percent down on your initial property. Remember that you’ll be paying other expenses as well when you buy the house, so include those in your calculations.
- Determine how much home you can afford. Instead of jumping into the bidding experience, start your process by figuring out how much of a mortgage payment you can make each month. Remember that your mortgage payment will likely include the escrow amount for real estate taxes. While online calculators are a terrific way to get a general picture of how much you will spend, they don’t tell the specific story. Use them for ideas, not concrete numbers.
- Write down what matters most to you in a home. Do you want a big kitchen? A four-bedroom home? A place in a particular city, borough, township or county? Write out what matters to you and, if applicable, your spouse or significant other. Know that you might have to compromise on some of these items because not every house in your price range may fit your ultimate desires. Add “nice to have” and “must have” next to each notation if desired.
- Get pre-approved for a loan. Go to a lender, such as your personal bank, and receive pre-approval for a loan. That way, you’ll be able to place bids immediately and not have to wait to see if you’re eligible for a specific loan amount. Many first-time homebuyers fail to take this step and miss out on great properties because they aren’t prepared.
- Look into home insurance. While you’re shopping for houses, stop by Strock Insurance to talk about home insurance policies. This will help streamline the process when you’re ready to initiate insurance on your first home.
- Be patient. Finally, unless you have to move immediately, take your time and look around. You don’t have to jump into the first home that looks good if you don’t want to. You’re in control of the process, and the more pragmatic you are, the better the end results will be!
Good luck finding the right house in PA this year!