From loan options to appraisals, there’s a lot to learn for first-time homebuyers. Enchanted Construction Services have the experience and skill you need to put you on the right path to homeownership. Taking the time to find the right house and the right financial plan for you is worth all the hard work. Where do you start? Simply use these tips to begin your journey of homeownership.

Start Your Planning Early- If you’re looking to buy a home, you really should start your planning around a year before you plan on buying your home. This gives you the time you need to budget, shop around, and get your finances in order.

Get Your Finances Straight- Before you take the plunge of buying your first home, find out where you stand financially. Here’s where to start getting your finances in order:

Check Your Credit Report On 3 Different Credit Sources

Start Paying Off Debt

Estimate Bills

Create An Emergency Fund

Do Your Research- Homeownership can come with some unexpected costs. Repairs, taxes, HOA fees, and changes in utility costs could quickly wipe out your budget. Research the neighborhoods utility costs and any costs that might come with the size and style home you’ve been dreaming of.

Make a Realistic Budget- Look at your fixed expenditures and add some extra cushion for unforeseen costs. Do not become house poor. Don’t buy a house you cannot afford to keep. Keep in mind that whatever amount the bank approves your for is not the same as the amount of house you can afford.

Calculate How Much You Can Spend on a Home- Making your budget helps you understand how much you can afford on your mortgage. Calculating a responsible house price range lets you know how much you can spend on a home. Use mortgage calculators to find out how much of a loan you can get to stay in budget with the amount of monthly mortgage payment you can make.

Scout Local and Federal Programs- Try to find the right housing program to fit your needs and see what kind of information and assistance you can get for your home search. The programs can range from simple informational meetings to grants.

Save, Save, Save- Once you’ve gotten all your ducks in a row, ramp up your savings plan. Work on getting enough savings for a down payment of at least 20% of your home. Also, work on having emergency savings for unforeseen issues that often occur during inspections.

Don’t Forget Closing Costs- A lot of first-time home buyers don’t understand the importance of closing costs and will often leave them out of their budgets. Typically closing costs can be anywhere from 3% to 4% of your purchase price. Closing costs include:

Home Inspection Fees

Attorney Fees

Appraisals

Credit Reports

Research Potential Neighborhoods- Find information on schools, shops, and commuting times in the neighborhoods that interest you. This area is going to be the place you call home for many years, you’ll want to know if the traffic gets backed up or if the neighbors are noisy. Drive through the neighborhood at different times of the day to get a feel for noise levels, traffic volume, and safety.

Shop Around for the Right Loan- Make sure you speak to multiple lenders and look at different options for lending. Look at every possible savings point you can use to get the best loan available for you and your current situation.

List Your Must–Haves- Before you even start a home search, you really need to know what options you need to have. For a family of four, a two bathroom minimum might be a necessity. Love wood floors? That might make the list. Don’t want to sacrifice outdoor space? Put it on the list. Understand what things you can and cannot do without so you get the home you’ll love.

Find a Home You Can Afford- You’ve made your budget, estimated a mortgage payment you can afford, and you have your list of necessities. Now it is time to find a home that takes all those things into consideration and fits your budget. Include commuting time and costs and energy costs to find a home you can love without going broke.

Enchanted Construction Services have been working in the South Carolina housing market for over 30 years. Come see us in our office located conveniently near Greenville, SC, Anderson, SC, and Spartanburg, SC, to find out how we can get you into your dream home. Or simply give us a call at 964-895-0601. We’re ready to take those first steps with you.