Finance Saving Tips for First Time Home Buyers

Buying a home is a complex and intricate process that requires proper planning and strategizing. Even the experienced home buyers do agree that they find the process tedious and new every time they are in the real estate market. It is even more confusing if you are a new buyer. There is so much you have to consider and decisions to make that it is so easy for you to forget some of the most important things. However, having some home buying advice for the first time buyers can keep you from making mistakes that can be suicidal to your finances and your credit score. Here are some tips to work with
Have a very comprehensive budget 
As much as you want to get yourself a new home, the last thing you want is to tie yourself down in debts for the rest of your life. Which is why it is utterly important for you to make sure that you have a budget that not only includes the cost of house but also other fees included in the process that include;

· The solicitor’s fee.

· Survey costs.

· Removal costs.

· Insurance for the building.

· Stamp duty.

· Mortgage arrangement and valuation fees.
You might also want to have a budget for the renovations, furnishings and any decorations that you might want to add in included in the mortgage.
Plus tip; it is best to do your budgetary allocations before plunging into the market. Look at your credit score and see how much you can get then go out hunting with a figure in your mind.
Don’t bite off too much then you can chew
The greatest problem with buying a new home is to ensure that you do not spend more than you can afford. It is a problem because it is hard to pass on some of the options that you will see. However, it is critical to making sure that you stay within your limits and can afford the monthly repayments. There are strict checks that mortgage lenders have in place and among these is the stress test that assesses your ability to make the payments if the interests were to rise, or your circumstance changed. Failing to make payments can have devastating results for you and your credit score.
Get a loan pre-approval
It is always a great idea to have a letter of loan approval from your lender. Of course, this will mean that you share all your financial information with the lender including the source of your down payment, any pending debts, and work history. Having a preapproval letter lets sellers know that you are prepared to make a purchase, and you have a lender ready to fund you.
Plus tip: Another benefit of having your loan pre-approved is the fact that you know how much you can spend without going out of your financial restrictions that are quite important.



Work with an agent or a real estate broker
Finding the right home for you can be a tedious and time-consuming task. This is more so the case if you are not aware of where you should be looking for the best prices and the houses that match your demands. A real estate agent even though at an extra cost is a great asset to have. They have a deep understanding of the market and know exactly where they should be looking for your kind of home. With a real estate agent or broker, there are better chances you will get better quotes, and the process will be much easier since they will do most of the heavy lifting for you.
Plus tip; when looking for a real estate agent, don’t jump on the first you get. It is important to research and get the right one. Your chances of having a positive first time home buying experience lie squarely on your ability to get a good agent.
Write down what your home must have and what you can pass on.
Once you start looking around, it is easy to get confused with all the different homes that have different features. To make it easier to you, write down the features that your home must have and also those that you are willing to do without. This allows you to prioritize the right home, not the one that seems to have the most attractiveness.
Given that this is you first time in the market, there are greater chances of making a mistake. The most serious however would have to be applying for more than you are worth. It is an imperative move for you first to evaluate your assets and liabilities before applying for a mortgage. This way you do not ask for more than you are worth and owe too much. Always remember that you need to save up for the down payment as your lender will require this before they can approve your mortgage.