Buying a home is a significant financial step. For first time home buyers, the encounter can be thrilling and daunting at the same time. Before you finally open the door to home-ownership, you have to take into consideration some crucial first steps. The learning curve can be stiff, but with a little homework, you can resolve most issues. When buying a home, it’s hard to determine if it’s the right one for you on the first go. Make use of first home buyer programs that will enlighten you on important things such as mortgage rates. The tips below will help your process go more smoothly.
Check your credit
Most homeowners will tell you that loans are life-saving especially if you do not have enough money to pay in cash. Home owning starts with a mortgage pre-qualification. Often, most first-time home buyers make the mistake of picking a price range out of the sky and looking for a home before determining whether they qualify for a loan. If your credit is damaged and needs repair, start the repair process six months before shopping for a house. Today, new homeowners have real possibilities for possessing homes because of low mortgage rates.
Get professional help
Being a first timer in the home buying game, you will want to make use of a good Loan Originator or Loan Officer and a reliable Real Estate agent. It’s not advisable to venture in this process alone without any professional guidance. Do not deal with a listing agent directly if you have no experience. Instead, find a buyer’s agent to help you. If the agent you are working with has no referral from friends or relatives, then ask the agent to give you references from previous buyers. Find a person who will give you an independent advice.
Find the perfect home
After considering your price range, find a home that you will not regret immediately after moving in. Size should be a top priority. Before looking for a home, have an idea of how big you want your new house to be, how many rooms and square footage you will want in the next five to ten years’ time. If you are a new couple and do not have kids yet, think about the future, considering if you will want to have children in the future. Remodeling or building an addition to your house is expensive.
Get a second opinion
Whether it’s from your friends, relatives or your spouse, get a view from someone else. When shopping alone, you may look through rose-colored glasses making it easier to overlook some flaws. A friend or a relative may be able to see the house as it is since they are not as emotionally invested. Bringing along a friend with construction experience is a bonus since they can pinpoint fixes and estimate repair costs. With that in mind, you will know whether to find another house or if the price is low enough to compensate for the shortfalls.
Determine a budget
Know how much you are willing to pay for your dream house and stick to the budget. It’s easy to see a house and fall in love with it leading you to make irrational decisions. Before hitting the road to shop for a new home, determine what will fit your budget and stay in control. Consider the costs of your homeowner’s insurance and property taxes, not just the mortgage payments.
Figure out your down payment
The huge mistake most first time home buyers make using up all their savings for the down payment. Start saving for the down payment way ahead of time. If you have been thinking of buying a house for quite a while, you should have saved up some money just for the down payment instead of using all your emergency cash. Also, inform your mortgage lender when you begin the process. You may ask your friends and co-workers questions about the process and how to go about it, but touch base with your Loan Officer regularly and ask questions, if you have any.
For most people, procuring a home is a dream come true. But the hassle that comes with it can be discouraging. Having a professional adviser to take you through this process will save you a lot of frustration and expenses. With the above steps, you will find that the journey is quite easy, and you will enjoy each step. Nowadays it is easy to own a home, if you plan everything right from the start.