Top 6 Tips for New Home Buyers to Get the Best Home for Your Money

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With rent prices going higher and higher, all renters will reach a point where enough is enough. When a rent payment is more than a monthly mortgage payment, and they have nothing to show for the thousands of dollars at the end of a lease, frustration mounts. Here are some new tips for new home buyers.

Many would-be buyers shy away from the daunting process of  home buying as lenders put buyers through more scrutiny than ever before. But with high availability of homes, all-time low interest rates, and no-hassle lenders like American Financing, now is the best time to go through the extra effort to buy a home. When contemplating jumping into the home buying pool, please consider the following tips for new home buyers will help you get prepared for the home buying process.

Five Tips For New Home Buyers

Tip #1 – Create a Home Buying Budget!

This is pretty easy if you already have a budget that includes your housing expenses. Suppose you don’t have one to start by keeping a daily log of your expenses and spending four weeks. Most banks and lenders will check that your monthly housing expenses are less than 28% of your monthly income.

If yare ou just over this threshold, you to fix it by looking at what you can cut out of your budget to make a home purchase affordable. Keep in mind that a housing payment can be less than what you are paying for rent and it might bring you in line with that threshold.

Tip #2 – Get Pre-Qualified For a Mortgage.

Many home purchases fall through because buyers find their dream home before they secure a loan. Shop around to three or four lenders and compares the rates and loan types offered.

After finding the right loan for you, the lender will issue a letter telling you, and sellers, the amount you are qualified for. Being pre-qualified lets you shop with greater confidence and move quickly on your dream home.  Sellers feel more confident dealing with you as it will speed up closing and reduce their costs.

Tip #3: Analyze Your Property Options 

The standard way of buying a home through a downpayment and mortgage works for a lot of people. However, an increasing number of homeowners, including first-time buyers, are learning to appreciate the alternatives. House and land packages are a particularly good option if you aren’t in a rush to move. The new build can be constructed to your requirements while you’ll also rule out the threat of facing unwanted issues a few months after moving in. 

Another solution is to build a fixer-upper. Sure, it’ll take time and effort to make the property feel homely. Nonetheless, it’s good news for your budget and allows you to stamp your personality on the building.

Tip #4 – Get to Know the Neighborhood.

While searching for homes within your price range, your agent may show you a home in the part of town you are not as familiar with. You may fall in love with the home, yard, garage and view but you should research the neighborhood itself.

Bad neighbors, crime rates, and poor schools can have a negative effect the value of a home. Check with online databases to see how the neighborhood stacks up.

Tip #5 – Understand the Costs After Closing.

Most buyers get so excited by the home buying experience that they lose sight of their actual monthly spending after the closing is completed. In addition to a monthly mortgage payment, you will have insurance, taxes, HOA (Homeowners Association) fees, and maintenance fees to keep the house in working order. These costs should be considered, so you do not spend every available dollar on a mortgage payment.

Tip#6 – Work With a Good Lender.

Working with the right lender can make all the difference. An experienced mortgage lender like American Financing, with a record of excellent customer service, is known for providing the most stress-free and hassle-free experience possible.

American Financing’s excellent reviews attest to their service quality. Look for a lender with positive reviews and a good rating from consumer agencies like the Better Business Bureau.

Right now there are many viable and affordable homes on the market, and additional homes are being added daily from foreclosures and new constructions. There are many tips for new home buyers that can help you navigate the great waters of being a homeowner.

Stop paying your landlord’s mortgage and take advantage of low rates before they go away. Converting your rent dollars into a real estate investment is a smart choice. And, you can do it with these great tips for new home buyers.

3 thoughts on “Top 6 Tips for New Home Buyers to Get the Best Home for Your Money”

  1. While we’ve never gotten burned, one thing that I’ve not considered as much as I know now that I should is to check your neighbors once you narrow in on a particular property. If you’re looking at neighbors that don’t take care of their property, this might eventually cause issues and it could be advisable to look at homes that have neighbors that seem to be in line with your standards.

  2. Perfect timing! My husband and I are saving up for a 20% downpayment, plus closing costs now! Didn’t know about the first tip, will have to do that!

  3. This couldn’t have come at a better time. Buying a house is my next big plan, once I have my debt paid down and have enough money to cover all those expenses that come with purchasing. I love the suggestion about writing down all of your expenses for a month- while I’ve done this in the past, I can see how vital it is for making a smart purchase. Thanks!


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