Bountiful, Utah is undoubtedly blessed, especially with nature. According to the City of Bounty Government, it has 16 beautiful parks! It also has a low cost of living and crime rate, a great education system, and large-city amenities with a "small town" feel.
With all those impressive qualities, it's worth buying a house here.
If you're unsure where to start, don't worry; the property management experts at PMI Mountain West have shared home-buying tips in this guide. Read on to discover how to make your first home-buying journey a success.
Consider Your Long-Term Homeownership Goals
One of the most crucial first-time homebuyer tips to abide by is determining your homeownership goals. Will you buy the house for your family to live in long-term, or will you eventually turn it into a vacation rental property?
If the house will be for your family's long-term use, consider the following factors:
- A size big enough for your family and has enough rooms for every member
- Neighborhood's safety and crime rates
- Proximity to your place of work and your children's schools
- Closeness to essential services like fire and police departments and healthcare facilities
If you plan to turn your first home purchase into a rental, you must also consider its potential profitability. In this case, a property management company can help by providing you with a free rental valuation. Use this to gauge your potential rental earnings.
Get a Mortgage Pre-Approval
Next on the list of steps to buying a house is obtaining a mortgage pre-approval. Consider doing this before you even start shopping because it'll let you:
- Determine the likelihood of lenders approving your loan application
- Know how much lenders are willing to lend you
- Show home sellers that you're ready and meet the qualifications to buy their property
The requirements for a mortgage pre-approval vary from one lending institution to another. However, they often ask for proof of identification (e.g., driver's license) and employment. You can usually submit bank statements, employment certificates, and pay stubs.
Ensure You Have Enough for a Down Payment
After getting a mortgage pre-approval, you can start your house-shopping adventure by checking out homes for sale in Bountiful. Check their prices, and ensure they're within your budget before you commit. Knowing how much they cost can help determine if you can afford the down payment.
According to U.S. News and World Report, the rule of thumb for down payments is 20%. So, if the home you wish to buy costs $300,000, you should aim to put down at least $60,000. Even if your mortgage lender requires a lower rate, it's still wise to follow this home-buying advice, as this means you'll owe your lender less and, therefore, pay less in interest.
Follow These Home-Buying Tips
From determining your homeownership goals to getting a mortgage pre-approval and saving enough for a down payment, these are some of the most crucial home-buying tips you should abide by as a first-time shopper.
If you need more real estate tips, don't hesitate to contact us here at PMI Mountain West. We're a full-service real estate asset management company specializing in real estate brokerage services. With our state-of-the-art technology, we can help you find your dream home in Bountiful, UT.
Speak with us today to get started with your home-hunting adventure!
