Being a first-time home buyer in Guwahati can be an exciting journey, but it can also feel overwhelming. As a first-time home buyer, understanding the real estate market is essential to make informed decisions and secure the best possible deal. This blog will walk you through the first steps to buying a house, the various mortgage options for first-time buyers, and provide essential first-time home buyer help to ensure a smooth home-buying process.

Understanding the market

Before you start your home search, it’s crucial to familiarise yourself with the real estate market. The market can vary greatly based on location, time of year, and economic factors. Start by researching neighbourhoods you’re interested in and keeping an eye on market trends. Look at factors such as:

1. Average home prices in the area and around Guwahati
2. Future developments that may influence property values
3. Whether the market is skewed towards buyers or sellers

Property Rates

The First Steps to Buying a House

 Once you have a grasp of the market, it’s time to take the first steps to buying a house. Here’s how to get started:

• Set the budget: Determine how much you can afford to spend on a home. Take into consideration your income (salary and any additional sources of income), savings ( estimation of down payment or closing costs), debts (loans or credit card payments), and living expenses (loans or credit card payments) to create a realistic budget.
• Save for a down payment: Most first-time home buyers will typically need to make a down payment based on a percentage of the home’s purchase price. Strive for at least 20% to bypass private mortgage insurance (PMI); however, several programs offer options for lower down payments.
• Get Pre-Approved for a Mortgage : Before you start house hunting in Guwahati, getting pre-approved for a mortgage can help you understand how much you can borrow. This step also shows sellers you are a serious buyer. 

Mortgage Options for First-Time Buyers

 One of the most crucial aspects of being a first-time home buyer is understanding your mortgage options. Here are some common types of loans:

1. Adjustable-Rate Mortgages (ARMs): These loans start with a lower interest rate for a fixed period, and then adjust based on market conditions. While they can offer lower initial payments, they come with the risk of future rate increases.
2. FHA Loans: These government-backed loans cater to first-time home buyers with lower credit scores and down payments. They can be a great option if you have limited savings.
3. Conventional Loans: These loans are not insured by the government and typically require a higher credit score and down payment.
4. USDA Loans: For those looking to buy in rural areas, USDA loans offer zero down payment options for eligible buyers.
5. Fixed Rate Mortgages: These loans have a fixed interest rate for the life of the loan, offering predictable monthly payments. They are ideal for buyers who plan to stay in their homes long-term.

Consulting a mortgage professional can help you navigate these options and select the best fit for your financial situation.

Loan Options

Know Your Budget Beyond the Purchase Price

It’s crucial to have a comprehensive understanding of your budget. In addition to the purchase price, consider other expenses, such as:

1. Property Taxes: These can vary significantly based on the property’s location and should be factored into your monthly budget.
2. Homeowners Insurance: This protects your investment and is often required by lenders.
3. Maintenance Cost: Set aside funds for ongoing repairs and maintenance, as homeownership comes with unexpected expenses. 

Common Mistakes First-Time Home Buyers Should Avoid 

As exciting as buying your first home is, it’s easy to make mistakes during the process. Here are a few pitfalls that first-time home buyers should watch out for:

1. Skipping the Pre-Approval Process:

Some first-time home buyers start looking at homes without knowing how much they can afford. Getting pre-approved for a mortgage first will save you from disappointment and help you stay within your budget.

2. Ignoring Additional Cost :

First-time home buyers often focus solely on the home price, forgetting the extra costs involved in the process. Keep in mind to include closing costs, property taxes, homeowners insurance, and potential repairs when budgeting.

3. Not comparing mortgage options:

Choosing the first mortgage option you come across can be a mistake. Take the time to explore different mortgage options for first-time buyers. Comparing interest rates, down payment requirements, and loan terms can save you thousands in the long run.

4. Letting emotion drive decisions:

It’s easy to fall in love with a home and overlook practical issues like long-term affordability or neighbourhood trends. Be patient and objective, and remember that there’s no rush to buy the first house you like.

As a first-time home buyer in Guwahati , embarking on the journey to homeownership can be both rewarding and challenging. By conducting thorough research on BHK options available in different neighborhoods, understanding mortgage options, and following the home-buying process, you can make informed decisions and navigate the real estate market with confidence.

Remember, this journey is unique for everyone, take your time, ask questions, and enjoy finding your first BHK!

At Achyut Group, we are dedicated to guiding you every step of the way, ensuring a smooth and successful home-buying experience in Guwahati. Whether you need help understanding the market, exploring mortgage options, or finding your dream property, our expert team is here to assist you.

Contact us today to start your journey towards homeownership!