Buying your first home can be fraught with trouble and expenses that could be avoided if you learn what other first-time homebuyers wish they knew going in. Here is a list to help you prepare.
Get Mortgage Pre-approval Before Looking for a Home
Don’t get attached to a particular home to buy before you are preapproved. Getting pre-approval for a mortgage tells you what you can afford. It also speeds up the offer and purchase process and helps sellers take you seriously over other offers that still require approval. You could lose out on a home if you must wait to get approved.
Monthly Payments Are as Important as the Total Home Price
When assessing the affordability of a home, even if the price fits your approved mortgage amount, it’s important to figure out the monthly payments with the taxes, interest, and insurance added. First-time buyers often underestimate this and then struggle after the sale to afford their new home.
Be Choosey About Your Lender
Make sure your mortgage lender works with and for you in a timely manner. Don’t just settle on the first one you talk to without ensuring their promptness. Compare rates and be aware that a lender who doesn’t take your needs seriously could sabotage your negotiations with a seller.
Inspections Aren’t Just a Legal Technicality
Don’t be in such a hurry for your selected home to pass inspection just so your mortgage company gives the green light. You want to dig deeper than the surface in an inspection to be sure there are no major costly issues with the house and property that you will regret later. Get a well-respected inspector to go over the home, top to bottom. Finding issues may not deter you from buying, but it may help you negotiate a better price that will mitigate the expense of getting extra repair work done after the sale.
Don’t Compromise What You Want to Save a Few Thousand Dollars
Whether you get a 15 or 30-year mortgage, a few extra grand won’t necessarily add that much hardship to the practical cost for a home that provides the size, features and value you need over time. Remember, it’s also about what you can pay monthly, which can be lessened with a higher down payment, better interest rates, lower closing costs, property taxes, and insurance. Don’t skimp on important needs, or you may grow out of the house and end up paying for another move too soon.
Be Prepared for a Wild Emotional Ride
Buying a home is a wonderful step into your independent financial goals, along with finally being a homeowner. You should also realize that many things can go wrong. Sellers can make your life difficult. Mortgage rules and paperwork is exhausting. Offers can look promising and then fall through at the last minute. Buying a home can be extremely stressful. The bottom line is to keep a check on your emotions and don’t get discouraged when circumstances change.
Using Voila! real estate services can help you make good early decisions in this crazy seller’s market. Don’t go it alone, especially in your first time buying. Let us help you walk through the process with confidence. Remember, you don’t pay for the services of a buyer’s agent since all fees are paid by the seller. Contact us today!