Are you thinking of buying your first home? It’s exciting! It’s a little scary-first-time homebuyers are faced with huge financial commitments and lots of new information. But don’t worry about the information. We have some insider secrets to help you understand what you know and what you need to do.
Here are 10 tips to help you get ready to buy a home:
1. Start saving early
Start saving by reducing costs and creating a budget that will help you reach your goals. You can also ask if your family can help you. Some government programs are also useful for first-time down payment buyers.
2. Don’t Raise Any New Money Before Buying A House
The amount you are borrowing affects the amount you can borrow. It also increases usage and reduces available credits, which can adversely affect your credit score with large purchases. When you are trying to make the most important purchases of your life, it is best to stay away from other important purchases.
3. Decide How Much Home You Can Afford
At what home price are you on the market? Did you not only estimate the monthly payments that you think you can achieve from your income, but also consider other costs such as insurance, property taxes, utilities, and maintenance.
4. Find Out About First-Time Home Buyer Assistance in Your State
Certain government programs are in place to help you buy a home for the first time (installments, closure costs, etc.). The program is typical for low to medium-income buyers and can be a grant (no need to repay). Knowing what is available and when will help you schedule your purchases to benefit from financial assistance.
5. Don’t Forget About Closing Costs
Make sure you add a closure fee when estimating how much your cash will spend to buy a home. Closing or “payment” is the end of the home purchase process. This is the day when money changes ownership and completes the sale. Your lender will give you an estimate of all costs in advance, but many are surprised by the cost of closure. According to Zillow, closing costs vary by borrower and location and range from 2% to 5% of the purchase price. For example, if you buy a house for $ 319,500 and the closure cost is 3.3% of that, you pay $ 10,544 for the closure cost.
6. Please Be Aware of Other Costs
Your down payment and closure costs are not the only costs. There are fees required by the lender, such as valuation fees and other fees to determine the value of the property. Title search fee to confirm that the seller has legal ownership of the property. Occasionally, you may pay in advance for property insurance or tax prepayment.
7. Find the Real Estate Agent that Suits you
Good realtors understand today’s real estate market. They know neighborhoods, home inventory, how to compare homes to help you make a decision, and how to submit your best offer to the seller and negotiate for your best interests. They also provide a guide from the escrow process to closure. This means that you want to hire someone with the knowledge, experience, and commitment. Seek advice from trusted friends, family, and colleagues and talk to different agents. Go to the open house. You may know the agent you like. You will spend a lot of time with your agent for months, so choose someone you will enjoy working with.
8. Utilize Open Houses and Virtual Tours
Tour homes for sale help first-time buyers find what they want in their homes. Many homes for sale now post 3D or video tours online. This allows you to virtually tour and easily see the flow from room to room. If you are used to traveling directly, this is really the way to go. When you stand there, you will have a better idea of how you live in space. Whenever possible, go to the open house with your agent. They show you what to look for and what to ignore.
If you go alone, here are some tips: Agents on the premises work for the seller. Please do not disclose your personal information or your feelings about your home. The information can be used against you in sales negotiations.
9. Don’t Be Afraid to Negotiate with the Seller
If you know the price of a house you can buy and what you need for a house to be happy, it’s worth negotiating to get it. However, the approach to negotiations depends on the initial selling price and the current housing market. For example, in a hot market with low inventory and multiple offers per property, low supply will prevent you from going home. In general, it is best to work through your agent who has the experience to help you put together a solid proposal to strategically buy and negotiate on your behalf.
10. Make Sure You Budget for Home Maintenance
During a home inspection before purchase, you will know when large mechanical parts such as heating, ventilation, air conditioning systems, and plumbing need to be replaced. Your seller can even offer an insurance policy that covers those costs within 1-3 years as part of the sale. In addition, a general rule for your home maintenance budget is 1% of the annual purchase price of a new, well-built home. Older homes generally require more than just basic maintenance. As a new homeowner, keeping your most valuable property in good condition is a priority.