Home Buyer’s Basic Guide For The First Timers
Finally being able to afford the home that you have always been dreaming of could practically be exciting and sometimes also daunting. Though buying a home might seem like the wisest investment that you can make, thinking things over to make sure that you are indeed ready for it must be done to avoid regrets. So whether you are just looking for help in making this decision, or you are looking yet to decide on pushing through it, we have listed several professional home buyer tips that can help you.
Make sure to save enough money
Though down payments for buying a home has a small rate, know that a bigger down payment means getting a better rate at your mortgage. It would also be great if you are going to allocate at least a small amount of cash just in case the new home needs repairs or renovations. Setting aside some cash for repairs is the most ideal thing to do so that you can right away address any repair needs of your new home.
Look for help
There are a lot of government programs that aims to help anyone that is looking to buy a new home, and seeking out one would be the first available option. If you are living in a community that does not have these kind of government programs, then the next big step to take would be to find a reliable lender to have your mortgage pre-approved prior to contacting an estate agent. Make sure that you are going to calculate all of the expenses involved such as the property taxes, mortgage, new housing expenses, homeowner’s insurance and homeowners association fees before going ahead with the purchase. With the total in hand, follow the advice of the Federal Housing Administration (FHA) and make sure that the total does not exceed 46% of the monthly gross income that you have.
Start Making Offers
When looking for houses to buy, one needs to make an immediate offer on the available houses for sale. However, always bear in mind that you do not have to make an offer you could not afford since at the end of the day, you will be the one that is going to suffer if you cant meet your ends. With the help of a reliable real estate agent, you will practically be able to decide the amount of money that you need to offer in buying the house along with all the other factors that needs to be decided. After an agreement with the seller has been made, a good faith deposit is required on your ends in order for the transaction to proceed to escrow which could take a month to finish. After that you are now ready to take the house out of the market with a promising contract that you are going to proceed in buying it, provided that no problems are seen in the house upon inspection.