Buying your first home is not as simple as you may think. The process of buying your first home is a long one, and you would like all the assistance you can get so that you do not make one wrong move and have to pay for it. Here are 10 tips for first time home buyers that you can consider.
10 Tips for First Time Home Buyers
1. Attend a home buyer’s seminar.
You likely had to attend driving school before getting your driver’s license for the first time. It is the same when it comes to buying and owning a house. By attending a home buyer’s seminar, you will learn first hand what you are in for when purchasing your very first home.
Home buyer’s seminars are conducted by a number of different organizations, including some known by Ben Buys Indy Houses.
2. Know what your budget is.
It is important to know what you can afford, because what you can afford ultimately depends on what you can make. There are many things you have to consider when putting a plan in motion for buying a home. Expenses, mortgages and taxes add up, and you cannot afford to buy a home until you have income that can pay for all of these expenses. It is also important to consider adding maintenance costs and insurance plans into your budget.
3. Understand your wants and needs.
When working with a budget, there are compromises that have to be made. What are the most important priorities to you when looking for a home? Location? School system? City or country living? Create a list and consider the homes for sale that best satisfy your wants and needs the most.
4. Know what your mortgage options are.
Houses are expensive to purchase, so rather than paying a lump sum of money, most homeowners either take out a loan or a mortgage plan that they must pay in increments. A mortgage is a loan that uses your home as collateral. If you cannot honor the mortgage, the bank that has given you the loan will be entitled to own it.
Look at your bank for multiple mortgage options. Be sure that you compare interest rates and find the right deal for you.
5. Consider a program for first-time home buyers
It can pay to be considered a first-time buyer. You can qualify for low-interest rates to select banks and government organizations. The most notable program is known as the FHA or Federal Housing Administration. This loan program offers smaller down payments and is known to be easily accessible to home buyers with imperfect credit scores.
6. Get pre-approval for a loan
Getting pre-approved for a loan is like a large commitment. You have to rely on this lender and have them understand what your life is like. Pre-approval can help you comprehend how much you can borrow from your lender. Knowing how much you can spend will help narrow your search in looking for a home that falls within your budget. Getting pre-approved for a loan will give you confidence, and you will see what your plan looks like before it plays out.
7. Choose a real estate agent wisely
Do not just hire the first real estate agent that you see. Not all of them are the same. The most important trait in a real estate agent is trust. If you know of a friend or family member that worked with a competent agent, get to know more about him or her.
It is also important to know that real estate agents are limited to their own areas or counties. When talking to real estate agents, let them tell you about their history or other credentials that would make them very helpful in your search for a nice, affordable home.
8. Review the offer process
Once you find the right home for you and show an interest in buying it, you must make an offer. While you will not be sure what kind of offer the seller will accept, there are many things you should consider. Knowing the asking price compared to other vacant homes around the area, how long the home has been for sale on the market, and even how many homes are for sale at the same time can affect the offer that you can give to the seller.
9. Have the home inspected
If you love the home, you still want to be a thousand percent sure that you are making the right decision in buying it. That is why getting a home inspector is worth it. They can tell you if there needs to be improvements with the home. If they find a major problem, you would have to deal with the problem yourself, should you decide to buy the home.
10. Read the fine print
The final step in the home buying process is signing the contract to own the home. Do not signimmediately. Instead, talk with your mortgage broker or real estate agent about the contract so they can help you understand the language of the contract better. This will ensure that you understand the terms of the contract and know what you are getting into before you lock yourself into the deal.
For every step of the way in the home buying process, you have a great opportunity to do it right. For more property buying tips, visit Ben Buys Indy houses.