Buying a home
for the first time can be an intimidating process. There are appraisals to get,
money to put in escrow, talk of "points," and so many "what
if"s that could derail the whole process.
It can be overwhelming.
Learning what
you can about the process before you begin can make it a little easier to
navigate. Here are 5 tips to keep in mind if you are looking to become a
first-time homebuyer:
Start Saving
No matter
what kind of financing you're able to secure, you're going to need a lot of
money to buy a home. Of course, there's the down payment, which can range from
3 percent to the traditional 20 percent. However, a lot more buyers are
qualifying for 100 percent financing. Even if you don't have to pay a down payment,
there's still the matter of closing costs, any repairs your new home might
need, and all the other extras that come along with moving into a new place.
Save as much as you can before you start shopping for your new home.
Use a Real Estate Agent
The process
of buying a home can be complex and confusing for first-time buyers. Working
with a real-estate agent can make the process a breeze. The agent can advise
you on how to make the offer (including how much to offer), what the next steps
in the process are, what professionals to use to close the deal, and so on. A
good real-estate agent can be like your personal assistant in the buying
process.
Compare Lenders
When you're
ready to start shopping, you need to secure financing. However, you shouldn't
settle for the first bank that offers you a mortgage. Be sure to compare
lenders to make sure you get the best rate and the best terms. You could save
yourself thousands of dollars over the life of your loan.
Shop Around
Once you have
the financing, it's time to shop around for homes. Make sure you look at
several homes and don't just fall in love with the first one you see. Even if
you end up buying the first one you see, make sure you look at several other
homes to get a real feel for what's available and to make sure you're getting
the best price.
Negotiate
When you find
your dream home, get ready to negotiate. You should never offer what the seller
is asking. In addition to negotiating the sales price of the home, you can also
negotiate any repairs or improvements that you want done, as well as payment of
some of the closing costs. A real-estate agent can give you advice on handling
these negotiations for the best outcome.
Don't let the
process of buying your first home overwhelm or intimidate you. Use these simple
tips to make the process easier and more accessible, and you'll be a pro in no
time!
Carmen Guzlas is a writer and
manager for Movoto.com,
where she has recently been researching Boston Homes. In
her spare time, Carmen enjoys gardening and making homemade soap.
Owning a house is a great investment indeed, and it’s everybody’s dream to have a place they would call their own. However, in purchasing their dream houses, people often commit mistakes like underestimating the true costs of owning a home and failing to budget for property taxes. Your tips are fairly general and are worded simply. First-time home buyers will have an easy time following them. Thank you!
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