Are you a first time home buyer? Are you thinking about purchasing a new home for the first time? Here are 6 tips for first time home buyers.
1. Get preapproved for a mortgage before you start house hunting.
Don’t get me wrong, you should start looking for houses to see the prices, but do not try to sign any contracts or anything just yet. You don’t know how much you can afford without being pre approved for a mortgage. Being pre approved for a mortgage gives you a more realistic view of your budget.
2. Slow and Steady wins the race. Plan far ahead in advance before you finalize the purchase.
Do not rush this process! You should create a plan and timeline before. It is recommended that you plan at the very least one year in advance.
3. Make sure your credit score is above average!
Lenders will pull up your credit score and the higher it is and the more likely you are to get a higher mortgage. Without a high credit score you could end up paying more money over the term of your mortgage. A person with a lower credit score can end up paying tens of thousands of dollars in interest than a person with a higher credit score.
4. Research first-time home buyer assistance programs.
Certain states, cities, and counties offer first-time home buyer’s programs. They often have low-interest-rate mortgages and tax credits are also available through some first-time home buyer programs.
5. Hire an experienced real estate agent very carefully.
A good real estate agent will seek out the entire market for homes that meet your needs and desires. They will guide you through the negotiation process as well as the closing process.
6. Prepare for closing day.
After you have signed the purchase agreement. You will be able to schedule a home inspection, where you can be provided with a full evaluation of the home’s condition. Do a final walk through of the home and point out issues if any that need to be addressed. Show up on the closing day so that you can sign paperwork, get your keys and pay what is owed.
