Young couple visiting a house with real estate agent

Tips for Buying a New Home With Confidence

Oct 25, 2024

Buying a new home is a major decision, and while it’s incredibly exciting, it’s understandable to feel nervous. This is, after all, both a major accomplishment and a huge once-in-a-lifetime purchase. But what if you could make a home-buying decision with total confidence? It’s not impossible with a little guidance. Continue reading for expert advice on purchasing your new home, from getting pre-approved for a home loan to choosing the right home and everything in between.

1. Determine Your Budget

Know ahead of time how much you can afford by factoring in your income, expenses, and debts. Use a mortgage calculator to see what kind of monthly loan payment you can afford, including property tax, homeowners’ insurance, and private mortgage insurance (PMI), if required. Getting pre-approved for a home loan can also help you set your budget because the financial institution will let you know how much you are eligible to borrow. Be sure to factor in the total homeownership costs when determining a budget, such as monthly utility costs, HOA fees, maintenance costs, and so on.

There are up-front costs for you to consider in your budget as well. The amount of your down payment will impact the total you borrow, your interest rate, and whether you’re required to pay for PMI, so use a mortgage calculator to find the best down payment amount for you. In addition to the down payment, you’ll need to pay closing costs, which are usually about 2% to 5% of the cost of the home.

2. Partner With a Mortgage Expert

When it comes to mortgages, it’s understandable you’d have lots of questions and it always helps to consult with an expert. At MHV, you can speak with a mortgage expert via our website. In addition to answering questions, these experts help guide you along the way by reviewing your financial situation to determine your ideal path to homeownership. Mortgage experts can also connect you with a real estate agent if you aren’t working with one yet.

Couple meeting with a mortgage expert

Home Buying Tips Straight From the Experts

 Find out what advice they would give you about buying a house. And find out why it’s normal to feel overwhelmed. 

Read More

3. Understand the Costs

It’s important to know the total costs of homeownership—both when you buy the home initially and throughout the time you own it. This includes your down payment and closing costs, but that’s not the last expense you’ll pay for the house. You’ll have to factor in maintenance expenses as well. There are also annual costs, like property taxes and HOA fees. You’ll have monthly utilities, interest, and home insurance. Determining these factors helps you decide if you can afford a particular home in the long run.

4. Define Your Needs and Wants

Don’t start looking at houses until you have some ideas about what you want. What are some of your non-negotiables? What are your essential features? How about features you would like but that are not deal-breakers? Make a list of these so that you can concentrate your house hunting on homes that meet your needs.

5. Choose the Right Location

This is a big factor that is related to your wants and needs. What is important for you to live in proximity to? Do you have a job you need to live close to? Are there certain stores you want nearby? Is public transportation important? If you have children or are planning to have them, you’ll want to look at the schools in the area. You will want to research specific neighborhoods ahead of time once you’ve discussed these criteria.

It’s also important to understand your local real estate market. Do some research on this ahead of time. Look into recent sales, general property values, and any trends in the area.

6. Hire a Reputable Real Estate Agent

An experienced agent can provide valuable insights and guide you through the home-buying process. They will also negotiate on your behalf, which may help you get a better price. Real estate agents also know what to look out for that the untrained eye will not. Their expert guidance ensures you’ll have more confidence when you buy your new home.

Of course, you want to ensure you’re hiring a trustworthy real estate agent. Consider asking friends and family if they have any recommendations. Sometimes, your financial institution can help you connect with one.

7. Inspect the Property

Another necessity to avoid any home-buying regrets is to trust a professional home inspector. A home may look perfect on paper, but you’ll feel much more confident when you get the whole picture. You don’t want to be surprised if your new home needs extensive repairs you didn’t budget for.

These professionals will inspect every inch of the home, from roof to furnace and plumbing to electrical. They’ll check for issues like termites. Even if the home is brand new, there could be undetectable issues. This inspection can help you avoid major problems that lead to costly repairs in the future.

If the inspection does find a major problem, it can impact the price. You can work with your real estate agent to negotiate for a lower price, or you can ask the seller to pay for any necessary repairs. However, in some cases, these inspections become dealbreakers. In that case, it’s okay to walk away and ask for your deposit back.

8. Trust Your Instincts

Never worry that you’re asking too many questions. Ask everything you need until you feel comfortable and have the full picture. Take your time looking over items such as the closing documents. If you’re unsure, it always helps to sleep on it. Remember, you want to be fully confident in your decision.

Do you still need some guidance? You can find more information on our mortgage options and about getting pre-approved for a home loan by exploring our Mortgage Page. You can also find helpful guides and advice about the whole home-buying process. For assistance or more information, don’t hesitate to consult with our mortgage experts. When you team up with New York’s Best-In-State Credit Union, we’re sure you’ll come away feeling confident about your new home.

Other articles you may be interested in