As a first time homebuyer you are excited, but anxious as well about buying your first home. The decision you have made is one of on the largest investments you will make in your life. You are probably asking yourself several questions. Can I afford the home of my dreams? Have I saved enough money for a down payment? Are there other costs involved that I have to pay upfront? You are not alone! Even though the homebuying process can be overwhelming and you will need to have patience, if you are prepared, purchasing you first home can be a good experience. Here are a few things to consider before making that big decision.
Getting a Mortgage
You may be fearing that you will be rejected for a home loan which is a valid concern for first-time homebuyers. The best way to find out is to get pre-approved and find a lender or mortgage advisor who can help guide you before you start looking at prospective properties. This helps you build confidence and gives you an advantage when dealing with multiple offer situations. It also gives the seller great value to know that you are already pre-approved and that you are serious about buying a home.
For first-time homebuyers the cost involved in the purchase of a home can be overwhelming. Working with your real estate professional and your mortgage consultant can benefit you in calculating how much you will be able to pay each month.
Your down-payment will vary depending on the loan program that is best for your financial situation and the home you choose. Look to your mortgage consultant to explain the different type of options available to you.
Other financial expenses that first-time homebuyers often forget about are closing costs. It is important to insure that along with your down-payment, you also have up to 10 percent of the home sale amount for closing costs. Savvy first-time homebuyers will take this into consideration before making an offer and know what the estimated costs will be in advance with professional help.
As a first-time homebuyer you will be eager to write an offer, but don’t feel pressured into making an offer on the first home you see. It is important to view several homes in your price range so that you can be familiar with the type of homes on the market. When you feel you have found the right home and you are ready to make an offer, your real estate professional can help get all your questions answered before making that offer. In some situations you don’t want to wait to long before making an offer because the longer you wait the greater the chance that another buyer will make an offer, making it more difficult to negotiate a good deal for you.
Conditions of the Home
There are may types of homes in your marketplace. For instance, bank owned properties and short sales can give you an opportunity to get a good deal, but be sure that you aren’t getting into buying a “problem” home. Homes that need major repairs can become a costly expense and unless the list price reflects the appropriate adjustments for the hidden repairs, the chances are the home is not worth what the seller is asking for the property. Your real estate professional should advise you to hire a home inspector so you know if there are any repairs that can be negotiated.
Always remember when buying a home to ask questions no mater if you think they are silly. You need to feel comfortable in your decisions by being educated about the home you are thinking about purchasing. As a real estate professional with Harcourts Real Estate Network Group we are here to be the asset you need to ensure your first home is a rewarding experience.