First Time Home Buyer Guide
Buying a home is one of the biggest milestones in your life. You finally have the chance to be in complete control of everything you want to do with your home. From choosing your favorite paint color to swapping out the flooring, you are the one who makes the final decision on how things are going to go. It is all a matter of finding the right home to help bring your dream to life. But, how do you know where to start and what to look for in the property?
Your credit report matters
Many people do not know how important their credit report is until it is too late. You want to get a copy of your credit report from the three main reporting agencies as early as possible. Review credit reports, check for delinquencies and errors. Plan to pay delinquent accounts and report errors to the appropriate agency, if any. A poor credit score may lead you unable to qualify for a mortgage loan or at a higher interest rate. You can get a free copy of your credit report at www.annualcreditreport.com.
Start saving early
When buying a home, you must think about things like closing costs and down payments. These things can add up rather quickly. Because of that, you want to make sure that you have as much in savings as possible. Another thing to consider is whether you are going to want to do any upgrades or improvements to the home after closing. You also want to save up for future maintenance cost. Adding to your savings as early as possible can help you out in the long run. You can start saving by using 52-Week Money Challenge.
Read: How Important Is Your Down Payment on a Home?
Determine how much you can afford
The hardest part of the home-buying process is to figure out what is affordable. Some first-time buyers rely on the amount the bank is willing to lend. However, banks often are willing to lend much more than you can afford. Rather than focusing on the how much lender’s offers, decide how much you are willing to spend on a mortgage payment each month comfortably without scarifying your lifestyle. A common rule of thumb is that your mortgage payment should be between 25 and 30 percent of your income. In truth, 30 percent is too high for many people.
Click here to access the Mortgage House Payment Calculator. Simply add in the price of the home you are considering and the calculator will return your estimated house payment.
Read: How Much I Can Afford to Buy a House?
Choosing the right real estate agent
Working with a real estate agent who has your best interest at heart is very important. You need someone who is going to work hard for you and help you purchase the home you want in the shortest amount of time possible. By having someone who listens to your needs, you can make sure you get everything you want in your new home.
Get a mortgage pre-approval
Getting a mortgage pre-approval can save you a lot of time and hassle in the buying process. It will let you know right up front what you can afford. This is a good way to save yourself from looking at properties that are out of your price range. It also helps speed things up when it comes time to close on the property.
Create your must-have list
Creating a must-have list will also help save you time and energy in the searching process. You can give that list to your real estate agent and they can refine their search to only include properties that meet your criteria. The list can include things like the single story or two stories, number of bedrooms and bathrooms, square-footage, location, school district, pool or no pool, and other details.
What to expect during your home search
When you are touring for a home in person, you can expect to spend a bit of time on each property. It takes time to make sure you get everything you need and want. After all, buying a home is a major investment and you do not want to jump into without knowing what you are getting. Expect to spend a few months, if not longer, looking for the perfect home for to call your own.
“According to 2016 National Association of Realtor Profile of Home Buyers and Sellers have highlighted that the average buyer typically searched for 10 weeks and looked at a median of 10 homes before closing a deal.”
Patient is the key
Buying your first home is a huge step and involves patience. It is never like going to the store and pick up a loaf of bread. There are steps to follow during the whole process of buying a home. You need to have someone working on your side who is going to guide you through the process as smooth and effortless as possible. Start by finding a real estate agent you can trust who is going to help you along the way.
Read: What is the timeline when buying a home in Phoenix AZ?
If you have any more questions about what you need to buy a house, contact or call/txt Swee Ng at 480.721.6253. I am more than happy to serve you for your real estate needs.
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