Life is full of electrifying firsts; your first step, first day at school, first job, first love, or your first home. However, purchasing a new home is both exciting and daunting.. Whether you're moving out of your parents’ house for the first time, owning your home after renting for years or acquiring a new home with a partner or spouse, buying a home is a huge step.
However, with adequate preparation, and a little luck, buying a home can be a smoother process. Below are some of the tips to follow.
1. Evaluate Your Financial Strength
Before you even attempt to purchase a new home, ensure that you examine your finances. Some of the major aspects that you should consider include:
Your credit will determine whether you're in a position to qualify for a mortgage, what type of mortgage, and the interest rate. If you are sure that you will require financing, you can start rectifying any blemishes that will affect your mortgage financing.
For a seamless home buying process, aspiring owners should have 20% of the purchase price of the new home saved up. However, there are down payment assistance options for those that do not have 20% saved. Also, you should have extra amount to cater for extra expenses such as insurance, taxes, inspection, application and closing costs.
2. Get Pre-Approved for a Mortgage
To weed out less serious buyers, many sellers look for and gravitate towards buyers with mortgage pre-qualification, even before you conduct any transaction. Prequalification will not only save your time by knowing how much home you can afford; it will make your offer more appealing and enticing to the sellers.
3. Select a Lender & a Realtor
A local lender will channel all their time and effort towards your specific mortgage plans and will be available to answer any questions along the way. Additionally, their knowledge of local realtors and the area can be helpful throughout the process.
Additionally, a local realtor is well versed with the area and will help you find an ideal home in your price range that will sufficiently meet all your needs. Aside from having an in-depth understanding of the local property values, they are well versed with how the process works in the area.
Buying your first home is an exciting milestone, and educating yourself prior can make it an even better process for you. For more first time home buyer information, download our eBook now!