Buying your first home can seem like a daunting process. From mortgage rates to taxes to closing costs, there’s certainly a lot to consider. Because your new home will likely be the biggest investment of your life, it’s crucial that you learn about the process before you get started.

The more you know about the home buying process, the more likely you will be able to get the home of your dreams at a price you can afford. That’s why we’ve put together these six tips for helping you achieve your goal of homeownership.

1) Know what you want.

When purchasing a residential property, you’ll have several options to consider. These include traditional single-family homes, condos, townhouses, and more. Each type of property has its benefits and drawbacks, so before you move forward in the home buying process, make sure you pin down which property type will best suit your needs.

2) Know where you want to buy.

Just as properties have their pros and cons, so do neighborhoods. Before you start checking out homes, decide where you want to live and focus your efforts on that area. If you’re not sure where to start, try conducting a general search to get a feel for what might interest you and narrow your criteria from there.

3) Do your research.

Texas is a non-disclosure state which means sales prices of homes are NOT public record. This is why sites like Zillow and Trulia have incorrect information regarding pricing. Contact your local agent and have them run a list of recently solds in the area you are looking so that you can see for yourself what homes are selling for.

4) Find out what you can afford.

Dealing with financing can be overwhelming at first, so make sure you’re getting help from the right places and not relying too much on information you find online! Real estate is LOCAL and regulations differ from state to state. Find out what you are comfortable spending per month and have your Realtor give you a list of reputable lenders. Your lender and your Realtor can work together to make sure you are taking advantage of all the great opportunities that are available to you such as grants!

5) Look at total monthly costs.

Mortgage payments are only part of the equation. Before you buy, you’ll want to figure out what your total monthly housing cost will be, including homeowner’s insurance and taxes. To get an idea of insurance costs, pick a property, call a local insurance agent, and ask for an estimate. You may also come across online home insurance quote estimator tools like this one from Liberty Mutual – these are great for rough estimates, but keep in mind that speaking directly with a local insurance agent or your real estate agent may yield a more precise estimation.

6) Figure out closing costs.

It’s important not to overlook the upfront cost of settling on your home. Closing costs include lender origination fees, taxes, title and settlement fees, as well as prepaid items like homeowner association fees and insurance.This information will be provided to you by your lender!

Ready to start searching for the home of your dreams? Reach out with your goals to get your home search set off on the right foot.

Call me!Leslie Melton, Realtor 903-851-3432 lesliemelton1@gmail.com