Buying your first home can be a very stressful and time-consuming experience, most especially for newlyweds. As a couple, it is one of your biggest life decision that can change your whole life and your entire family as well.
Thus, it is important to know the crucial accepts that can ease your process. With prices rising and inventory dense, it is a tough time to get involved in the market. Are you ready to buy a home?
Below are the tested and proven tips that you can use a reference to make your first home buying experience easy and free from hassles.
Pick a Credible and Competent Real Estate Agent
Hiring an excellent real estate agent is one of the most important things that you should consider. With their help, you do not have to visit open houses and search through tons of homes online.
A real estate agent will certainly save lots of your time. They deliver you home listings directly from multiple listing services (MLS) that suits your parameters. Plus you will not spend a lot of time examining active short contingent lineup that are under specific contracts.
Real estate agents will instantly know if new listings are occurring that are not even on the market. Also, the real estate agent will be the one to examine different homes for you. So you will save tons of time, effort, and even gas.
Furthermore, they can instantly detect overpriced listings and offer you recommendations accordingly. You can easily find excellent real estate agents in any online companies such as Rose & Jones.
Formulate a Budget and Abide by it
For instance, you have found a home of your interest, but you are not certain if it is within your price range. Well, it is a big problem. Before you even begin looking around, it is critical to resolving all vital questions that can greatly affect your decision.
Know what type of home you can afford and your price range. You can even utilize an online mortgage calculator to find out the highest monthly payment within your financial means, basing it on the cost of the home after paying a down payment for over 30 years mortgage.
It sucks when you already liked the home, but you cannot afford to pay the monthly payment, including all other expenses. If that is the case, then you need to move on immediately. Don’t get stuck up.
Furthermore, you can seek the help of the loan officer of your bank to land at a figure. They will certainly be able to inform you how much money the bank can lend you and the interest rate. Though the expected figure does not automatically make even what you can manage to pay a home, it will provide you with a clearer picture of how much you can pay.
Of course, it is never that easy to buy a home, most especially if it is your first property. And money is typically the common problem that gets in the way. To help you out, consider getting a loan. In this way, you will know for sure how much money you need to buy a home.
For first-time home buyers, Federal Housing Administration or FHA loans are ideal. It only requires you to pay a minimum down payment, which is much lower than any traditional loans. You can also ask your real estate agent to look for a mortgage broker.
Arrange All Documents
When enlisting for mortgages, you should/must keep track of all taxes and income. Usually, mortgage lenders will ask to provide at least two pay stubs, bank statements, and tax returns. All pages, even empty pages.
Organize all required documents ahead of time to save time and money. Know that purchasing a home may take a long time, but if you know what documents you need and where to look for them, you can save tons of time when you are ready.
Get Ready for a Home Inspection
In some places, buyers can do a home inspection before even they purchase it. While for other places, a home inspection is a contract juncture. It means you have all the right to revoke the contract if you discover any faulty conditions in the home.
Keep in mind that it is not necessary for home sellers to make any fixing if you discover any problems during the home inspection. A home inspection is somewhat for your evaluation and enlightenment.
So you have finally decided to buy your first home. But beware, it can be an exciting and distressing experience at the same time, most especially if it is your first time. However, you can make the process a lot easier by taking some time reading the above tips and understanding each of them.
Published by Zachary McGavin