Tips for First Time Homebuyers

Thinking about buying a home for the first time? It may seem like purchasing a house is rather daunting, but if you are armed with the proper steps that you should take, the process will be easier. You want to get the most that you can out of your purchase without being overwhelmed.

It turns out that finding the right house is only the beginning of the home buying process. You need to invest the time necessary in order to avoid sloppy shopping and financial disaster. Your goal is to be happy with the home that you decide to buy.

Here are some steps that you should take in order to ensure a successful buying experience for first-time home buyers:

1.       Decide whether or not to buy. Does a home purchase fit into your financial puzzle? Figure out if now is a good time to buy a home. If you’re renting, be sure to weigh the pros and cons versus owning your own home.

2.       Get your finances in order. Assess your budget and survey your spending. Be honest about your financial situation and trim the unnecessary spending from your budget.

3.       Figure out what you can afford to buy. Take into consideration the numerous costs associated with owning your home such as property taxes, homeowners insurance and closing costs. Accumulate your down payment and figure out the size of your mortgage payments.

4.       Know and improve your credit score. Lenders try to determine your credit risk level according to your credit score. A better score may mean better and cheaper loan options.

5.       Choose a mortgage. Should you get a fixed-rate or adjustable-rate mortgage? Or would a balloon loan or hybrid loan be better for you? Work with a good, straightforward mortgage lender that has your best interests in mind.

6.       Decide what and where to buy. Location and value are the most important aspects of buying a home. The price you pay for your home as well as where you home is located are factors that greatly affect your home’s value.

7.       Get a real estate team. A good lineup includes a real estate agent, real estate broker, lender, property inspector, tax advisors and escrow officer. You complete the all-star team!

8.       Negotiate. Good negotiators base their strategy according to the price of a property, how long it’s been on the market, and how motivated the sellers are. Don’t be afraid to play ball and push the envelope.

9.       Inspect the property. Skipping this step could be extremely detrimental, as this protects your investment. Don’t find out about foundation flaws or poor plumbing after you’ve bought the home.

10.   Close the deal. A closing officer will prepare the transfer of the title. Keep in mind the many closing costs that are associated with this step.

Following the above steps could make the difference between a successful sale and a disaster. They can also assist you in deciding if buying a home is for you, and if now is the right time for your purchase.

To make sure that you have successfully paid a fair price for your property, you can get a free home value report from Neighborhood IQ to learn the value of your new house.