How to Buy Your First Home Part 2
Last week we provided details necessary for a first time home buyer to get started in the process. Getting approved for a home loan and understanding different mortgage options has already been covered to prepare you for the next set of steps.
5. Choose a Reliable Realtor
The right Realtor is a valuable resource for locating homes within the established budget that also have the desired features. It helps to discuss exactly what is wanted and needed in a home, such as the amount of bedrooms and bathrooms. Their job is to use their knowledge of the housing market to make valuable recommendations and do the hard part of negotiating favorable home loan terms. Word of mouth is usually the best way to find the most reputable person for the job.
6. Reasons to Have a Home Inspection
Do not let a home inspection seem like just an option when it comes to such as expensive investment. This is one professional that is absolutely on the side of the buyer and willing to look for hidden problems that may be lurking out of sight. Problems with the foundation, termite damage or infestation, mold, and a weak roof are all problems that come with great expense. Paying an inspector that knows how to find these issues can influence the buying decision or at least help to negotiate a lower price.
7. Escrow and Closing the Deal
The two final steps for the first time home buyer come after a bid is placed and accepted. All important documents, information, and the down payment are gathered by the escrow holder so that every party is protected so that closing papers can be signed. If requested, the lender granting the mortgage loan can be present to finalize all agreements in one sitting. Once all of this is complete, it is finally time to get started moving into your very first home.
Last Minute Home Buying Tips
– Taxes and insurance on a home need to be factored into the monthly budget when deciding an acceptable housing cost. As a general rule, this total cost should never exceed thirty percent of the household income for a typical month. If an adjustable rate loan is chosen, be prepared to handle the additional cost when the fees change.
– There is a cost associated with closing the deal on the home, and it needs to be a part of the purchasing budget. This is not factored into the down payment so expect to pay for this completely out of pocket.
– Ensure that the first experience purchasing a home is a pleasant one by staying within your means. Imagine losing the home because an adjustable rate increases beyond the monthly budget or you chose to make a minimal down payment. Always think long-term rather than settle for numbers that sound good at the moment.
Get in touch with our Real Estate Attorneys through the contact form on our site or give us a call at 1-866-96-GMLAW to reach the office immediately. We’re ready to help you understand every part of securing a home loan and the rest of the buying process to make sure that you are truly ready to begin the process.