Things to Know When Buying a First House
Buying a home is one of the largest purchases you will make, and you should approach it as an informed buyer to avoid stress and delays. Arming yourself with knowledge about how to make an offer or where to look for financing proves beneficial when attempting to buy real estate. With the proper application of knowledge in these areas, you have a better chance of securing the home of your choice.
Other People Are Reading
-
Acknowledge the Big Picture
-
Your monthly mortgage payment isn't the only expense that you will bear when purchasing a home. Make sure you add in property taxes, homeowner's insurance, utility expenses and maintenance. Once you do, you will see that the amount you may have to spend each month is significantly more than the mortgage payment. Acknowledging this fact will help you understand what your budget is when buying a home.
First-Time Home Buyer Programs
-
If you don't have a lot of cash for a big down payment, there are federal, state and local programs available for first-time home buyers that have less stringent requirements. Check the website for the Federal Housing Administration or with your local lender to see if you qualify.
-
Pre-Approval
-
Get pre-approved for mortgage in a specific amount from one or more lenders. Pre-approval requires you to fill out a mortgage application and pay a small fee. A pre-approval allows you to know what you can afford according to what lenders are willing to lend you. If you gain pre-approval from more than one lender, you can choose the best interest rate. Services such as Lending Tree allow you to apply for pre-approval with several lenders at the same time.
Location
-
Think about each potential home in terms of resale value. Is it in a desirable neighborhood? Are there good schools nearby? Is it convenient to places people need or desire to go? All of these things will help give your home more value.
Check With Your Tax Professional
-
Find out if there are any tax credits for first-time home buyers that are available. Some tax credits can be applied immediately to the purchase of the home with no waiting. Arm yourself with knowledge so you can take advantage of all the benefits available to you.
Work with a Buyer's Agent
-
Real estate agents can be a seller's agent, a buyer's agent or an agent who can represent both the buyer's and seller's interests. To avoid conflict, choose a real estate agent who represents people buying a home. Ask for help with a comparative market analysis to find out what homes in the same neighborhood of similar construction, size and age have sold for recently. This information will help you make a reasonable offer to the seller.
Allow for Contingencies
-
Ensure that any contract you enter into to purchase a home allows you to back out, without penalty, within a certain period of time. Things can go wrong with a home inspection or even financing, so protect yourself with a contingency clause.
-
References
Resources
- Photo Credit home image by dinostock from Fotolia.com
