Top 5 Things for First Time Buyers to Know
If it is your first time to a home, you would surely want to know how to go about it. First time home buyers like you often feel anxious, doubtful and indecisive during the home buying process. This is normal. Knowing the step by step procedure in buying a home is a great way to overcome these apprehensions. You will surely feel more confident if you have a clear image of the steps that need to be taken in buying a house.
Here are the top five things first-time buyers like you should know before you start any serious searching. Once you have a strategy in place you will have a much more targeted approach to your search efforts, and you will achieve greater results with less effort.
- Research, research, research
You cannot learn what real estate agents know through their years of experience in the field overnight. You can stock up on knowledge that will help you better understand the process of buying your home. There is plenty of resources online that can help you understand the basics of buying a home. Utilize the innovations in technology since these advancements have made researching much easier to anyone with a laptop and an Internet connection.
- Find a good and reliable agent
Even with the things you will learn on the Internet, working with an experienced real estate professional who will pursue your best interests is still the best option to make this home buying journey a smooth ride. Do not rely on recommendations of friends, family, etc. because they are probably founded on emotional factors, and not YOUR longer term Financial and Lifestyle goals. Keep in mind that for most people, Real Estate decisions are usually THE MOST IMPORTANT FINANCIAL DECISIONS they will ever make. Interview agents until you find one focused on your goals, who brings you the wide range of options that you should consider, and who is patient with your concerns and comfort level in moving forward.
- Apply for pre-qualification and pre-approval for credit
It is best to get PRE-APPROVED for credit even if you have not decided yet, which one of the homes you want to buy. You need to work out your budget and look at your ability to sustain the mortgage you will have to pay in order to own a home. Always compare lending options and do the math. Ask your Realtor to guide you through a wide variety of purchasing strategies that may help you decide which one will give you the maximum result for your long term goals. Select at least two lending sources and talk to them about your loan options as you look forward to having the home of your dreams.
- Determine your financial capability
Consider your working budget as you look for homes for sale. You need to set a limit on the price of the home you will buy so that you will know which houses will fit your budget and your loan. This is why it is important to know and maximize the programs you can avail such as home loan assistance and down payment assistance. If you are short on cash, you may have the options of 1% programs, concessions for Closing Costs, and private lender equity participation without interest charges.
- Search your dream home
Going through the homes is the most exciting and enjoyable part of the home buying process. Once you have done the steps listed above, you are now ready to go through the home options available to you and the other home buyers.
The exciting feeling of buying a home for the first time is a one of a kind experience. It is challenging but in the end, you will feel fulfilled and satisfied as you exhaust all your options and finally get to own your dream home. It can easily be the BEST FINANCIAL and LIFESTYLE decision you will ever make!
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