It is no secret that buying a home, especially your first one can be a frightening and a daunting task, often plagued with anxiety. However, as terrible as that sounds, there are strategies to skip the nerves and remorse and surprisingly enjoy the excitement of buying your first home.
1.Get your ducks in a row.
This seems obvious but never the less a good reminder. As a first time home buyer you a are most likely a rookie in the real estate process and are more likely to be controlled by your emotions and impulses. This step requires you to be detail oriented; check your credit scores, get your finances in order, research the home buying process right down to the real estate language, etc.
2. Go through a trial period with your mortgage payments.
You should be in understanding of what you can and what you can’t afford. Finances are the sole reason you feel anxiety, but this strategy can help determine if what you thought you can afford you really can’t. Determine how much you want to spend on a house and then use a mortgage calculator to estimate your payment. If you’re currently paying $1,000 a month on rent and you anticipate your mortgage payment will cost you $1,500 a month, for the next several months budget $1,500 for housing and put the difference aside. You can also apply this strategy for other housing costs such as higher utility bills. If you’re able to spend the extra money without breaking into a cold sweat, this will help ease your anxiety. But if money becomes tight and you’re not able to make the payments every month, you’re better off buying a cheaper property.
3. Interview agents and lenders.
This is probably the most important part of buying a home, the perfect agent and lender can make a world of a difference in the entire process. You need to look for someone who is experienced and has seen the good, bad, and ugly of the home buying process; because most likely they will be qualified to handle and diffuse any situation or problem that arises. This goes for the lender as well, the finance aspect can look tricky but having a qualified lender can offer you options and gain a deeper understanding of your finances.
4. Get your expectations in check.
It’s important to look at the big picture and know what battles to fight, and what battles to accept defeat. You also need to understand that the odds of finding a home with EVERYTHING on your wish list don’t always happen, so understanding the concept of compromise will save you heartbreak and your agent stress. A part of setting realistic expectations is understanding that buying your home won’t necessarily be smooth sailing. In most case a setback or issue will arise and no matter how big or small it’s important to keep your calm and allow your agent/lender to do their job; remember it will do no one any good if you become frantic, or unreasonable.
5. Don’t make any sudden changes to your personal finances.
This small mistake can seriously affect your mortgage. These changes can include accepting a new job, changing your employment status or acquiring new debt. There are obviously things that are out of your control, just as there are things in your control. Maxing your credit card on a 60-inch television is considered a monumental no-no. The golden rule of home buying finances is to make any big purchases.
We hope that at least one of these strategies are helpful and ease your anxiety of buying a home. For more questions, concerns or tips, please contact us at (704)-918-1005