Tips For First-Time Home Buyers
Tips For First-Time Home Buyers
Buying your first home is exciting! As a first-time home buyer, educate yourself on the local real estate market and explore every aspect of the home buying process before making your purchase. Here are a few tips to help you navigate the process.
Research
Figure out what you want to buy. Online platforms will show you trends for the markets in which you're interested in. The more you look around, the better idea you'll have of what's available and how competitive your local market is.
Save For A Down Payment
In most cases, it's common to save up to at least 20% of your future home's value to use as a down payment. But, many lenders allow much less now. First-time home buyer programs allow as little as 3% down. But, putting less than 20% down may mean higher costs and paying private mortgage insurance. Play around with a down payment calculator to help you land on a goal amount. Some tips for saving for a down payment are to save tax refunds, setting up an automatic savings plan and work bonuses.
Compare Mortgage Rates
To get the best mortgage rate, shop around as much as you can. You'll be surprised at how much mortgage rates vary from different lenders. Different lenders will offer different loan programs. Get at least three quotes and compare both fees and rates. Select the lender with the program that best fits you.
When you're ready, you can get pre-approved by providing your paycheck stubs, W-2 statements, and bank account statements so your lender can verify your financial situation.
Find A Real Estate Agent
A real estate agent will help you locate homes that meet your needs and are in your price range. Once you've chosen a home they can assist you in negotiating the entire purchase process, handle your paperwork, and act as liaisons between you and the seller. A real estate agent should be highly skilled, motivated and knowledgeable about your desired neighborhood. You'll be working closely with your real estate agent, so it's essential that you find someone you get along with. To find a good agent, ask relatives, friends, and coworkers for referrals.
Make An Offer
Before making an offer, look at properties that cost less than the amount you were approved for. You can afford your preapproval amount, but it doesn't account for monthly expenses or problems that arise during homeownership. When touring homes be open-minded and look at several options and remember that some things can be fixed easily and others can not. Make a list of pros and cons, consider the neighborhood, commute to work, schools, and other necessities. Once you've selected the home that meets your needs submit an offer.
Get An Inspection
Congratulations, your offer was accepted! Now it's time for you to take a closer look at the property. Your real estate agent should be able to recommend an inspector or you can find one yourself. The inspector will look for flaws in the structure, electrical systems, appliances, and etc. They will write up a report and estimate the cost of repairs. Be present for the inspection so you can get clarification and details around any issues. Present the report to the seller, they may agree to fix any issues or give you money to repair the issues yourself.
Closing
If the inspection didn't reveal any significant problems, you should be ready to close. The final stages of your purchase may include having the home appraised, a title search, obtaining insurance and completing mortgage paperwork. On the day of closing, you'll sign the required documents to complete the purchase. There are also costs associated with closing which can consist of lender fees, prepaid expenses such as taxes and insurance, and settlement costs.
If you're in the process of buying or selling a home in Missouri, it would be my pleasure to make sure you always have the current information you'll need to make the best decision for you and your family. Click the link below. I am here to help with all of your real estate needs!
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