7 Tips For First Time Home Buyers
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Loading... - Waceera Boru
- 09 Aug 2022
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Buying a home for the first time can be daunting. But with the right real estate company, you’ll feel supported from an advocate looking out for your interests and goals. So many details go into the whole process that your real estate agent will handle behind the scenes. But what do you need to do? How or where do you begin?
Here are some basic steps to point you in the right direction:
1. Financing—Looking at Your Budget
Knowing your budget’s limit increases your confidence when looking for a home or land. Talk with your bank (or other banks). They’ll look at your saving and credit scores, and will guide you through mortgage options you qualify for. Interview multiple lenders and compare loan interest rates and their fees. Consider what you’ll need (if any) for a down payment, closing costs, and moving expenses. Keep tabs on your monthly budget so you know what monthly mortgage payment you can handle. *First time home buyers may also qualify for a tax break or other assistance from the state.
2. Get Pre Approved—House Hunting with Confidence
Once you’ve decided to buy, you’ll want to get pre-approved by the lending company or bank of your choosing. Being pre-approved allows you to know your target price range and shows the sellers you’re ready to purchase a home. It also gives you confidence when house shopping.
When the market is competitive (as it has been), most seller’s and their agents will require a pre-approval letter of proof of fund to be submitted with any offer. *Once you’ve found a bank you want to work with, do not make big adjustments to your credit (ie., open new accounts, open new credit cards, or add loans). This can adversely affect your credit and result in you losing contracts on your dream house once you find it.
3. Make a Critical Items List—Important Things to Consider
Think about practical or essential items you’ll want to know about any home or land. For instance, in a house you might want to consider: What is the commute to work or local schools? Which school district is it located? What are the taxes and will they be the same at the price I’ll pay at closing? What are the utility costs? Does it have high-speed internet access?
For land, you might consider the following: Are you going to build? Does it have it access to City water, Co-Op, or a well? How much will it cost to get electricity? Is it in a flood plain? Is there a survey or does it need one? Are there any easements I need to be aware of?
Considering these factors and others can help make or break your decision and prepare you for any pros and cons before you buy. Read More…
