Three Tips For Anybody Buying Their First Home
Posted on: 27 January 2018
A home is one of the biggest investments you'll ever make, which is why you want the process to go smoothly. That is why it helps to know some tips for buying your very first home.
Get Pre-Approval From a Lender When You Get Serious
One tip you may have heard was to get pre-approved for a loan as soon as possible if you want to buy a home. This could be a problem, because pre-approvals do not last forever. You will end up having to constantly update your pre-approval every 60-90 days if you do not make an offer on a home in that time frame.
Consider getting your pre-approval when you start to get serious about buying a home. If you are just going to open houses on the weekend, hold off for awhile on the pre-approval and wait until you are more serious about making an offer.
Know the Total Monthly Cost
A mistake that can be made is only factoring the mortgage into your monthly budget, and not factoring in property taxes, home insurance, mortgage insurance, and setting money aside for maintenance. You do not want to buy a bigger house than you can afford, and struggle to make your monthly financial commitments. This can happen after getting your mortgage pre-approval, which will state how much money the bank is willing to lend you for the home. The pre-approval amount does not mean you should spend that much money or can afford a home of that value.
Don't Be Afraid to Negotiate
If you think you found a home that you want to make an offer on, don't be afraid to negotiate with the seller. Everything is up for negotiation when purchasing the home, which includes making an offer below the list price. When you have a home inspection performed, that also gives you an opportunity to ask for money to pay for damaged items that need to be fixed.
The home buying process gives you opportunities to walk away from a home if you do not like what you discover. The seller knows this, and will be willing to work with you rather than spend time trying to find another buyer.
These are just a few tips that are helpful to know when buying your first home. Reach out to real estate agents for more tips that can help the process go as smooth as possible.
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