Are you contemplating buying your first house? Now is a good time to take the first step towards the goal of home ownership. Interest rates are low and housing is abundant. But for those looking into buying their first house, there are some tips and pointers to keep in mind.
Many first-time homebuyers begin their journey by first determining what kind of home they would like. Do you want a rambler-style or a tiny house? An English Tudor or something more contemporary? Knowing, and even visualizing, the home of your dreams when you are buying your first house is a great first step in the right direction.
“First-time buyers should also first decide where they would like to live, as in the county, city and community,” advised Peter Hiller, veteran Realtor with Hiller Real Estate Group. “You can change the house; however it is very difficult to move a house.
Loan Preapproval or Loan Prequalification?
First-time buyers also need to work to build relationships with a loan originator and real estate agent who are well-versed with first-time homebuyer programs. Knowing what you can afford when it comes to buying a home is very important and your Realtor or lender can help with the pre-approval or prequalification process.”
When it comes to prequalification or pre-approval for a loan, prequalification is the simpler of the two processes. First-time homebuyers can contact their realtor or lender and share information about their finances. Be prepared to answer questions involving income and debt when working with a trusted agent on prequalification. The information gathered during this meeting will be used to give a rough estimate of how much of a loan a homebuyer might qualify for. Pre-approval however, is more a more in-depth and complex process.
Your lender of choice will need to take the time to perform an extensive check of many things including your finances, your credit rating, what your debt load is, how much money you will be using as a down-payment and much more. This resulting dollar amount is a much more reliable and accurate estimate of what you can truly afford when buying your first home. The pre-approval process has another benefit as well – the peace of mind in knowing that your extensive background check will likely help to avoid unexpected obstacles during the buying process.
Get A Home Inspection
Once you find the home of your dreams, it’s always a good idea to have it inspected. A home inspection is conducted to help make a determination as to the condition of the major mechanical and structural systems of the property. “Someone else that soon-to-be homeowners should connect with is a trusted home inspector with years of experience,” Hiller added. “An inspection of the property, the foundation and the surrounding environmental may be needed to make sure the property meets the standards set forth in your written agreement. If there are issues or inconsistencies brought to light during this time, it may delay or even nullify the contract.”
If you are committed to buying your first house, remember this; knowledge is power when it comes to buying a home for the first time. Newbie home buyers should take some time to learn what they can about the home-buying process and arm themselves with the knowledge to make smart and savvy choices.
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