Are you ready to buy your first home? We understand that real estate or realty can be tricky. While it is an exciting time, it can also be an overwhelming process. If you are a first-time homebuyer, we have created a quick, easy list of tips to help you embark on this journey.
1. Determine Your Price Range
The first thing you want to think about before looking at homes is if you can afford to buy. If you can, do you know what your price range is? This is a crucial step to determine to avoid wasting your time looking at homes that are out of your budget. A good tip is that your monthly mortgage payment should be no more than 30% of your gross monthly income. Also, the higher your down payment, the better interest rate you can get.
2. Secure A Loan
Getting pre-qualified for a loan before you start your search is key. You will have to go through a bank, credit union, or mortgage broker. Here are a few tips to know about lenders that will help you prepare:
- Lenders like consistency. This means that if you’ve had the same job for more than two years, you should be good to go.
- Be sure to have your financial documents ready, so you will have the appropriate answers.
- Salary is treated differently than commission.
- Your credit score will be checked and your interest rate may depend on that score.
3. Make A List Of Must-Haves
Determine where you want the location of your future home to be. Also, know what important features that you must have such as the number of bedrooms, a backyard, a pool, turnkey, etc. Using your list, your realtor can help you eliminate homes that don’t match your criteria, saving you time and money.
4. Find A Realtor
Now that you have an idea of what you can afford and are aware of your financial requirements, finding a realtor is the next step. When you look for a real estate agent, you will want to find someone who you are comfortable with. After researching and finding an agent that you like, it’s time to meet with them. A few good questions to ask them would be:
- How long have you been in business?
- How well do you know the area?
- What can I expect from you if you become my realtor?
5. Do A Home Search
Your realtor will help you weave through the numerous houses listed. Looking through houses online and open houses is the main event of your house-buying journey. A real estate agent is much more equipped to help you sift through homes to help you find one that matches your preferences and needs. A realtor may also be able to help you find a home before it is listed for sale.
6. Make An Offer
After you find the home of your dreams, the time has come to make an offer. Your real estate agent can help guide you with determining your offer price and terms. After your offer is written, your agent will discuss the contract with you and then start negotiating with the agent who’s selling the house.
Follow these effective tips for home buying and as always, if you have any questions about realty, we are happy to help.