Are you in the market to buy a home? Is this your first time purchasing a home? If so, follow these seven tips for first-time home buyers to help navigate the real estate process.
Check your credit score.
Your credit score helps determine your financing options; for example, lenders use it to set the terms and rates for your loan. The higher your credit score is, the lower your interest rate will be. Whereas lower scores typically generate more expensive mortgages.
Create a budget.
When purchasing a home, payments can add up quickly. Things to consider payments for include down payments, the purchasing price and closing costs.
Setting a budget for your home search helps you know how much you can afford and what your all-in costs will be.
Explore your mortgage options.
Getting pre-approved for a mortgage is helpful because, when making an offer on a home, it shows the seller you are financially qualified. Be sure to explore your options and compare terms and rates.
There are a variety of available mortgages with varying down payments and requirements. This includes conventional mortgages, FHA loans, USDA loans and VA loans.
Hire a real estate agent.
One of the most important tips for first-time home buyers is to hire a real estate agent. An experienced real estate agent can help you save time and money when purchasing a home.
Working with a professional can help you expand your search power and give you objective information and opinions.
Get an inspection.
A home inspection is an assessment that provides an overall picture of a property’s condition, including structural and mechanical aspects. This is a vital step where professional inspectors look for potential problems that can help determine how you proceed.
Make an offer and negotiate.
Your inspection may reveal some issues. Some may need to be dealt with before your mortgage lender finalizes your loan. Now is the time to make an offer and negotiate. You can start by asking the seller to pay for repairs in advance or lower the price to cover the costs of the repairs.
Secure your financing.
And finally, secure your financing. A preapproval and an official approval are not the same. Getting a final loan approval means you need to keep your finances and credit in order during the contractual phase. Try not to open any new credit lines or make any major purchases until the final paperwork is signed.
Summary
With these tips for first-time home buyers in mind, are you ready to get started on your real estate journey in East Alabama? Contact Ashley Hedden, your local real estate expert!
In the meantime, continue reading our blogs for more real estate tips.
